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The Equilibrium Effects of Eviction Policies
Abstract
I propose a dynamic equilibrium model of rental markets that endogenously gives rise to defaults on rents and evictions. In the model, eviction protections make it harder to evict delinquent renters, but higher default costs to landlords increase equilibrium rents. I quantify the model using micro data on evictions, rents, and homelessness. I find that stronger eviction protections exacerbate housing insecurity and lower welfare. The key empirical driver of this result is the persistent nature of risk underlying rent delinquencies. Rental assistance reduces housing insecurity and improves welfare because it lowers the likelihood that renters default ex ante.
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The effects of low income housing tax credit developments on neighborhoods
Baum-Snow, N., & Marion, J. (2009) · Journal of Public Economics · doi:10.1016/j.jpubeco.2009.01.001 · Cited by 264
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Metadata
- Authors
- ABRAMSON, B.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2026-05-11
- Volume
- 81
- Issue
- 5
- Pages
- 2809-2852
- ISSN
- 0022-1082
- 1540-6261
- Cited by
- 2
- References
- 2
- Language
- en
- Licence
- onlinelibrary.wiley.com/termsAndConditions#vor (vor)
- doi.wiley.com/10.1002/tdm_license_1.1 (tdm)
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
