JACOBO ALEJANDRO DAMIÁN
Artículos
Título:
The effects of rent controls in Latin America. A century of regulations in Argentina
Autor/es:
ALEJANDRO D. JACOBO
Revista:
Discussion Papers of DIW
Editorial:
DIW Berlin- German Institute for Economic Research
Referencias:
Lugar: Berlín; Año: 2020
ISSN:
1619-4535
Resumen:
ollowing World War I, rent control became a standard policy response to the housing shortage and the resulting rent increases. Typically, economists blame it for creating inefficiencies in the housing market and beyond. We investigate whether rental market regulations (including rent control, protection of tenants from eviction, and housing rationing) had any effects in a middle-income Latin American economy, such as Argentina. To answer this question, we take advantage of a wide range of housing market indicators and restrictive rental regulation indices covering almost one century. Using a standard OLS model and MARS, a non-linear estimation technique, we find that rental market regulations have exerted a statistically significant nega- tive impact on the growth rates of the real housing rents. However, they were only effective for short periods following both World Wars, when regulations were novel and particularly strong.