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An Analysis of the German Tenant Protection Law

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  • Homburg, Stefan

Abstract

The article analyzes the welfare impact of Germany's tenant protection law. It shows why tenants do not demand protection in a market equilibrium, notwithstanding that moving expenses may be considerable. Under this assumption, tenant protection enforced by the law makes tenants worse off in the long run, whereas the number of actual evictions remains unchanged. -- In dem Aufsatz werden die Wohlfahrtswirkungen des Zweiten Wohnraumkündigungsschutzgesetzes untersucht. Zunächst wird ein Modell entwickelt, das zeigt, warum Mieter in einem unregulierten Wohnungsmarkt nicht freiwillig Kündigungsschutz nachfragen, obwohl bei einer Kündigung beachtliche Umzugskosten entstehen. In diesem Fall werden die Mieter durch einen gesetzlichen Kündigungsschutz langfristig schlechter gestellt, während sich zugleich zeigt, daß die tatsächliche Zahl der Kündigungen unverändert bleibt.

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File URL: http://econstor.eu/bitstream/10419/92900/1/Homburg1993Tenants.pdf
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Bibliographic Info

Article provided by ZBW - German National Library of Economics in its journal EconStor Open Access Articles.

Volume (Year): (1993)
Issue (Month): ()
Pages: 464-474

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Handle: RePEc:zbw:espost:92900

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Related research

Keywords: Tenant protection; Welfare;

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Cited by:
  1. Hubert, Franz, 1995. "Contracting with costly tenants," Regional Science and Urban Economics, Elsevier, vol. 25(5), pages 631-654, October.
  2. Scholten, Ulrich, 1999. "Die Förderung von Wohneigentum," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 8, number urn:isbn:9783161472343, July.
  3. Iwata, Shinichiro, 2002. "The Japanese Tenant Protection Law and Asymmetric Information on Tenure Length," Journal of Housing Economics, Elsevier, vol. 11(2), pages 125-151, June.

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