thanks for the shoutout!

#RentControl #RentStabilization #UrbanEconomics #HousingPolicy #Affordability #PolicyEvaluation
@jhucarey.bsky.social

🌎 𝙒𝙝𝙮 𝙞𝙩 𝙢𝙖𝙩𝙩𝙚𝙧𝙨: As rent control gains policy tract momentum , it is important to understand the potential unintended consequences of rent control policy.

🔗 𝙁𝙧𝙚𝙚 𝙖𝙘𝙘𝙚𝙨𝙨 𝙡𝙞𝙣𝙠 (𝙩𝙝𝙧𝙤𝙪𝙜𝙝 𝙈𝙞𝙙 𝙎𝙚𝙥𝙩𝙚𝙢𝙗𝙚𝙧): www.sciencedirect.com/science/arti...

• To address endogeneity, we use an IV strategy leveraging the relative availability of rent-stabilized units at move-in.

• We build a job-search model that explains the disincentive mechanism behind the results.

𝙒𝙝𝙖𝙩 𝙬𝙚 𝙨𝙩𝙪𝙙𝙮: we test the hypothesis whether rent control affects tenant unemployment using microdata from NYC.
𝙆𝙚𝙮 𝙛𝙞𝙣𝙙𝙞𝙣𝙜𝙨:
• Rent control raises unemployment by 4+ percentage points, especially among tenants with unearned income.

Of course Martin. I just opened my DMs! (new to Bluesky)

Nonhomothetic preferences play a pivotal role in modeling this structural change. As incomes grow, shifts in consumption patterns can drive sectoral growth, helping explain economic transformation during the period. 6/7

Without this technological catch-up, the story would have been different. Spatial inequality would have deepened as industrialization progressed. Instead, convergence prevailed, illustrating the importance of balancing sectoral and spatial dynamics. 5/7

Technological adoption was critical. Rural regions, despite their exposure to agricultural decline, avoided worsening spatial inequality. Why? Rapid catch-up in technology offset the adverse impacts of their sectoral specialization. 4/7

Key forces at play:
1️⃣ Technological catch-up drove regional wage growth and spatial convergence.
2️⃣ Regional sectoral specialization exposed areas to shifts in aggregate reallocation. Together, these forces reshaped the U.S. economy. 3/7