The short-run comparative statics of a rental housing market

Duality in comparative statics in rental housing markets with indivisibilities

“…However, this custom is not necessarily found in other countries. The other case was analyzed more typically in the urban economics literature, such as Wheaton [27], Hartwick et al [10], Braid [5] and Arnott et al [3]. Haurin [11] and White [28] discussed the comparisons of surpluses for companies in different subsidy systems.…”

“…Suppose that only those 5 The first interval is taken from 5 to 25. In the Japanese standard, one-room apartments are categorized into this class.…”

“…5 Thus, the apartments are classified into T = 5 × 4 = 20 categories. When we consider data of apartment supplies, each apartment is classified into one category.…”

“…In another literature in urban economics such as Sweeney [22], Braid [5] and van Lierop [24], apartments are treated as indivisible. However, the housing quality is expressed as a continuous variable.…”

“…Its basic logic is the same as Ricardo's [19] and Alonso's [1] argument of differential rents. Technically, it is also corresponding to the envelope curve of the bid-offer curves in the bid-offer model (e.g., Fujita [7,Section 3.6] Braid [5] and Gerber [9]). In our comparative study, we will consider a differential rent vector as a proxy of a competitive rent vector.…”