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Rent Control, A Costly Redistributive Device? The Case of Canberra

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  • ROBERT ALBON

Abstract

This paper assesses the consequences of compulsory rent and eviction control which was imposed in Canberra in 1973. A partial equilibrium model is utilized, but the effects of rent control on related markets are also considered. Two ways of estimating market rent are scrutinized, one of which is utilized in an attempt to measure tenants' benefits from the policy. A Hicks' equivalent variation measure of ‘tenants’ surplus' is proposed which takes account of the quantity constraint associated with rent control. This is estimated assuming a Cobb‐Douglas utility function. The extent of the costs associated with conferring these benefits is indicated.

Suggested Citation

  • Robert Albon, 1978. "Rent Control, A Costly Redistributive Device? The Case of Canberra," The Economic Record, The Economic Society of Australia, vol. 54(3), pages 303-313, December.
    • Handle: RePEc:bla:ecorec:v:54:y:1978:i:3:p:303-313
    DOI: 10.1111/j.1475-4932.1978.tb01632.x
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    References listed on IDEAS

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    1. Peter L. Swan, 1976. "Income Taxes, Profit Taxes and Neutrality of Optimizing Decisions," The Economic Record, The Economic Society of Australia, vol. 52(2), pages 166-181, June.
    2. R. L. Hall & C. J. Hitch, 1939. "Price Theory And Business Behaviour," Oxford Economic Papers, Oxford University Press, vol. 0(1), pages 12-45.
    3. de Leeuw, Frank & Ekanem, Nkanta F, 1971. "The Supply of Rental Housing," American Economic Review, American Economic Association, vol. 61(5), pages 806-817, December.
    4. Olsen, Edgar O, 1972. "An Econometric Analysis of Rent Control," Journal of Political Economy, University of Chicago Press, vol. 80(6), pages 1081-1100, Nov.-Dec..
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    Cited by:

    1. Konstantin A. Kholodilin, 2022. "Rent Control Effects through the Lens of Empirical Research: An almost Complete Review of the Literature," Discussion Papers of DIW Berlin 2026, DIW Berlin, German Institute for Economic Research.
    2. Robert P. Albon & David C. Stafford, 1990. "Rent Control and Housing Maintenance," Urban Studies, Urban Studies Journal Limited, vol. 27(2), pages 233-240, April.
    3. Konstantin A. Kholodilin, 2022. "Rent Control Effects through the Lens of Empirical Research," DIW Roundup: Politik im Fokus 139, DIW Berlin, German Institute for Economic Research.
    4. Lok Sang Ho, 1992. "Rent Control: Its Rationale and Effects," Urban Studies, Urban Studies Journal Limited, vol. 29(7), pages 1183-1189, October.

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