| Abstract: | ABSTRACT. A two period consumer choice model is presented in which housing is treated as a quality differentiated good. The short-run comparative static response of rental housing to a price change is examined via an example, an exogenous increase in the inflation rate. Two stylized facts are alternately used; interest income is taxed, and interest rate ceilings are imposed on small savings deposits. The partial equilibrium distributional impact of inflation, in the context of rental housing markets, is also discussed. |
