Miceli, Thomas; Sirmans, C. F. - Department of Economics, University of Connecticut - 2010
This paper adapts the theory of efficiency wages to explain the natural vacancy rate in rental housing markets. An … equilibrium vacancy rate penalizes landlords who fail to maintain their units because if a tenant vacates a unit, the landlord … habitability laws. We also find some evidence for the search-cost theory of the natural vacancy rate. …