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Should we tax vacant dwellings? A search equilibrium model applied to the rental housing market


  • Ménard, Sébastien


This article examines the effects of a tax on vacant dwellings. I use a search equilibrium model in which the distribution of rent is the result of the owners’ posting strategy. I show that this tax reduces the number of vacant dwellings and increases the average rent.

Suggested Citation

  • Ménard, Sébastien, 2012. "Should we tax vacant dwellings? A search equilibrium model applied to the rental housing market," Economics Letters, Elsevier, vol. 117(1), pages 88-90.
  • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:88-90 DOI: 10.1016/j.econlet.2012.04.095

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    References listed on IDEAS

    1. repec:adr:anecst:y:2000:i:58:p:11 is not listed on IDEAS
    2. Sonmez, Tayfun, 1996. "Implementation in generalized matching problems," Journal of Mathematical Economics, Elsevier, vol. 26(4), pages 429-439.
    3. Rosenthal, Leslie, 1997. "Chain-Formation in the Owner-Occupied Housing Market," Economic Journal, Royal Economic Society, vol. 107(441), pages 475-488, March.
    4. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
    5. Wheaton, William C, 1990. "Vacancy, Search, and Prices in a Housing Market Matching Model," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1270-1292, December.
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    Cited by:

    1. Antoine Bonleu, 2014. "Procedural Formalism and Social Networks in the Housing Market," Working Papers halshs-01178230, HAL.

    More about this item


    Housing market; Rent distribution; Search equilibrium; matching;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand


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