Equilibrium Limited Liability Contracts in a Landlord-Tenant Market
We propose a model based on competitive markets in order to analyse an economy with several homogeneous landlords and heterogeneous tenants. We model the landlord- tenant economy as a two-sided matching game and characterise the equilibrium of this market. In equilibrium, contracts are Pareto optimal, and the incremental surplus generated in a landlord-tenant relationship accrues to the tenant. We also suggest policy measures in relation to efficiency and income distribution.
|Date of creation:||Sep 2003|
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- repec:esx:essedp:550 is not listed on IDEAS
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Journal of Economic Theory,
Elsevier, vol. 82(2), pages 469-480, October.
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