Effects of Quality Changes in Rental Housing Markets
نویسنده
چکیده
This paper presents a comparative statics result on a rental housing market. The relationship between the qualities of apartments and their rents is investigated. Our comparative statics considers rent changes when an improvement occurs in a local area of the market. We show that rents go up locally in response to the improvement, but rents go down in the inner area of the city. To show the distinctive feature of this result, we compare it with another, known, comparative statics result. Also, an application of our findings to a practical situation is presented.
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