units due to rent control in New York City. This methodology involves comparing the relative consumption of different … demographic groups within the rent controlled area with the relative levels of consumption in a free market area. Our best … estimate of the costs of rent control in New York due to the misallocation of rental apartments is 200 dollars per apartment …

loss. A major social cost of rent control is that without a fully operational price mechanism the 'wrong' consumers end up … using apartments. When prices are set below market price, many consumers want to rent apartments even though they receive … are second order. Thus for a sufficiently marginal implementation of rent control, these costs will always be more …

characterize these observations by showing the tight connection between price-rent fluctuation and the liquidity constraint faced … equilibrium model to assess the empirical importance of the role the price-rent fluctuation plays in the business cycle. According … to our estimation, a shock that drives most of the price-rent fluctuation explains $30% of output fluctuation over a six …