The nominal rigidity of apartment rents

David Genesove*

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

80 Scopus citations

Abstract

This paper contributes to the empirical literature on price stickiness by documenting a high rate of nominal rigidity among housing rents in the United States between 1974 and 1981. Of the units studied, 29% had no change in nominal rents from year to year. The incidence was much higher (a) in years and cities with a low median nominal rent growth rate, and among (b) units whose tenants continued from the previous year and (c) units in small buildings. A little less than half of the nominal rigidity can be ascribed to grid pricing. Possible explanations, as well as the likely distributive and allocative implications, are discussed.

Original languageEnglish
Pages (from-to)844-853
Number of pages10
JournalReview of Economics and Statistics
Volume85
Issue number4
DOIs
StatePublished - Nov 2003

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