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Stickiness of rental rate and housing vacancy rate

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  • Wang, Haoyu

Abstract

We study the stickiness in house rent by examining rent under two settings: rent is determined solely by landlord and rent is set by Nash bargaining between landlord and tenant. Our results show that, under Nash bargaining, the vacancy rate is able to restrain the growth of rents and hence generates the stickiness feature in rents.

Suggested Citation

  • Wang, Haoyu, 2020. "Stickiness of rental rate and housing vacancy rate," Economics Letters, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520303001
    DOI: 10.1016/j.econlet.2020.109487
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    References listed on IDEAS

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    1. Gallin, Joshua & Verbrugge, Randal J., 2019. "A theory of sticky rents: Search and bargaining with incomplete information," Journal of Economic Theory, Elsevier, vol. 183(C), pages 478-519.
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    Cited by:

    1. Sidong Zhao & Weiwei Li & Kaixu Zhao & Ping Zhang, 2021. "Change Characteristics and Multilevel Influencing Factors of Real Estate Inventory—Case Studies from 35 Key Cities in China," Land, MDPI, vol. 10(9), pages 1-29, September.

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    More about this item

    Keywords

    Sticky rent; Nash bargaining; Business cycle;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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