Business, 16.04.2020 19:15 Coltonh7681

When cities pass laws limiting the rent landlords can charge on apartments, the laws usually apply to existing buildings and exempt any buildings not yet built. Advocates of rent control argue that this exemption ensures that rent control does not discourage the construction of new housing. Evaluate this argument in light of the time-inconsistency problem. a. When a city passes rent control laws without exempting any landlords, this creates benefits for existing and the supply of future apartments available for rent. b. If a city keeps its promise to exempt future landlords of newly constructed housing from rent control laws, this increases the new housing and decreases the benefits to future . c. Once new housing projects are completed, elected city officials know that make up the largest number of voters in city elections, which the city to renege on its promise. d. The potential landlords of new housing projects recognize the financial risk of these misaligned political incentives, which may result in .

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When cities pass laws limiting the rent landlords can charge on apartments, the laws usually apply t...

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