The Review of Economics and Statistics Vol. 85 No. 4 2003
The Nominal Rigidity of Apartment Rents
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.
- DOI
- 10.1162/003465303772815763
- Volume
- 85
- Issue
- 4
- Pages
- 844-853
- Language
- en
- Sources
- openalex crossref