IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/20018.html

The Effect of Rent Controls along the 'Excess' Price Distribution

Author

Listed:
  • Monras, Joan
  • García-Montalvo, José

Abstract

Catalonia enacted a rental cap policy that affected only some municipalities and, within those, only units with prices above their "reference" price. We show that, as intended, the policy led to a reduction in rental prices, but with price increases at the bottom and price declines at the top of the distribution. The policy also affected supply, with exit at the top which was not compensated by entry at the bottom. We show that a model with quality differences in rental units rationalizes the empirical facts and allows us to compute the welfare consequences of an (increasingly popular) policy that was designed as a short-term remedy to a tight rental market.

Suggested Citation

  • Monras, Joan & García-Montalvo, José, 2025. "The Effect of Rent Controls along the 'Excess' Price Distribution," CEPR Discussion Papers 20018, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20018
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP20018
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:20018. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.