Abstract The paper explains that issues of rentcontrol and the often toxic debates that surround it have been a social and an economic concern for several decades. Typically, rentcontrol efforts are made at the city or municipality level and are not enacted at the state or federal level. The paper discusses how rentcontrol and the issues related to it are nothing more than a series of laws that are intended to control what city rents average, as well as regulate how much, percentage wise, they can be increased in any given year.
From the Paper "Traditionally, New York, New Jersey and California are most commonly associated with rent controls because of those states' rapid cost of housing increases that have priced many consumers out of the housing market and forced many individuals to become career renters."
Abstract This paper discusses the economics behind rentcontrol enforcement. It discusses the advantages and disadvantages of rentcontrol and the effect that this has on the rental market. It describes basic supply and demand issues as they relate to rental prices and availability. The paper concludes that exercising rentcontrol policies more often than not results in an actual shortage of housing due to the innate removal of the economic stimulus for private developers to build new rental properties.
From the Paper "Exercising rent control policies more often than not results in an actual shortage of housing due to the innate removal of the economic stimulus for private developers to build new rental properties. Additionally, rental units not controlled by rental control laws are forced to compensate for the lost revenue of controlled units by having their rent levels unduly increased. Other research indicates that some of the sacred cows of rental control proponents, such as improved integration in the community and elevated living standards for the low-income and the elderly, simply do not occur (Freeman & Braconi). Housing markets, just as any other market, should be left to the forces of the free market itself to find and locate its own equilibrium relative to supply and demand. If the market demands additional housing and the economic profile of the community supports its construction, additional housing will be built. If the economic profile of the community does not support it and there is not a local demand, supply will not increase."
Abstract The paper provides details of the rentcontrol policy, including when it was enacted, how it works and what it was designed to accomplish. The paper then offers arguments both in its favor and against it and suggests modifications to the policy in order for it to become more effective.
From the Paper "In order to present the topic to the reader, we will try to define the main terms. In a free market, the demand and the supply tend towards what it is called 'the market equilibrium', that is towards a balance point. Because in some cases this thing does not happen, due to different reasons, the state decides to impose a floor price or a ceiling price, meaning that the state will impose through a law or other regulating act a minimum or maximum price of a good. "Rent control, like all other government-mandated price controls, is a law placing a maximum price, or a 'rent ceiling,' on what landlords may charge tenants." This law has its roots in the years after World War I when "rents were 'controlled' through the efforts of local rent anti-profiteering committees and public pressure" . That is, between 1919 and 1924 some cities and states adopted measures such as "rent and eviction control laws" . The next step was the adoption of modern rent control after the Second World War and "following Richard Nixon's 1971 wage and price controls.""
Abstract This paper examines components of restrictive rentcontrol legislation and its economic and social consequences in America. This examination focuses specifically on rentcontrol applications in New York City and the urban cities of Santa Monica and Berkeley, California. Additionally, the paper discusses how government regulations violate two of the eight basic principles of economic thinking. These basic principles are: (1) incentives matter ? choice is influenced in a predictable way by changes in economic incentives and (2) economic actions often generate secondary effects in addition to their immediate effects.
From the Paper "Rent control is one of the most controversial social welfare programs in existence. In 1943 and after World War II, the federal government enacted rent controls as a "temporary" attempt to combat housing shortages in intensive populated or urban areas and to protect residents from high housing prices. Opponents argue that rent control result in decreased levels of construction, decreased levels of maintenance on existing properties, and abnormal housing vacancies, and is therefore economically ineffective. Some opponents even feel that rent control causes homelessness. Advocates of rent control and rent stabilization see it as a way to ensure the availability of affordable rental housing for low and middle-income urban dwellers. Rent control advocates contend ? there was already a housing shortage and that rent-control laws were enacted to keep landlords from taking advantage of the situation by "gouging" tenants? (Sowell, 1999). Many rent control proponents feel that the abolishment of rent controls would result in increased homelessness. "
Abstract This paper discusses the supply and demand simulation for an Economics for Business course. The simulation utilizes the example of the apartment industry in the fictional city of Atlantis. Chiefly, the supply, demand, and equilibrium within the 2 bedroom housing market are examined in relation to the market. The simulation is further complicated by the introduction of a price ceiling to demonstrate how market forces can be artificially manipulated.
From the Paper "The simulation uses the example of a fictional city, Atlantis, to demonstrate the impact of market forces in the 2 bedroom housing market. In the housing market there are many forces that affect supply and demand; some natural, some artificial. The supply and demand of 2 bedroom units in Atlantis is affected by both natural and artificial forces. The natural forces affecting supply and demand in the simulation were the natural influx of people into the city which, those people needing affordable housing caused a greater demand of 2 bedroom units and a temporary shortage until supply caught up with demand. Another natural force affecting supply and demand is housing preference. In Atlantis the example was given that the local population, regardless of price of 2 bedroom units, began to prefer single-unit, free-standing houses."
Abstract The economic quandary of rentcontrol has successfully perpetuated itself in many different American communities for several reasons. Social beliefs and political controls have allowed for renters to retain their protected "right" to cheap rent at the expense of the rights of land owners and others who would hope to prosper from a free competitive housing market in these select cities. This paper details the economic, social, and political elements of rentcontrol in large cities. It outlines both the positive and negative elements involvement, and draws an overall conclusion based on economic policy.
From the Paper "Opening up premier properties to the market would spark interest and allow property owners to determine supply and demand. Property owners can determine how many properties they would like to rent as well as the amount for which they will rent them. These land owners will most likely choose to rent out as many properties as possible at the highest rate the market will endure. This will allow the above increase in supply that should prevent prices from going too high".
This paper is a general analysis of basic economic terms, along with an applied analysis of supply and demand through the healthcare industry and economic articles.
Abstract This paper discusses some general economics terms such as microeconomics, macroeconomics, and supply and demand, among others. Additionally, the concept of supply and demand as it pertains to healthcare and the healthcare industry is discussed. Finally, three separate articles that relate to the concept of supply and demand are summarized.
Outline:
Economics Research
Economics Supply and Demand Macroeconomics
Microeconomics
Elasticity
Inelasticity
Gross Domestic Product (GDP)
Supply and Demand in Healthcare
Supply and Demand Articles
From the Paper "Another article entitled, The Most Dangerous Deficit: Why the Supply and Demand for Global Public Goods Could Kill You, author Moises Naim finds that the rate of natural catastrophes occurring around the globe has increased and the resulting cost to the world's economies is substantial (2006). The argument, according to this author, is that the supply of resources normally taken for granted that are part of the global public goods such as the seas and global fishing or timber harvesting around the globe, is decreasing so rapidly that the resulting decrease in supply of these global public goods is resulting in astronomical price gains that make these resources unaffordable for many."
Abstract This paper states that the impetus behind rentcontrol is benevolent but misguided. The author believes that rentcontrols are more damaging than often believed and there is little that government policy can do to ameliorate the situation. The paper relates that price floors are economically unsound policy platforms, and it is more likely that rents would better be determined and controlled by the free use of market forces.
Abstract The paper looks at an article entitled "Going Crazy for Ethanol" by S. Pearlstein and explores economic issues associated with the supply and demand of a gasoline substitute, ethanol. The paper provides a synopsis of the article in relation to economic theory and explains why changes have occurred in the supply, demand and price of ethanol. The paper examines the invisible hand theory that is proposed to facilitate the equilibrium of price and demand. The paper concludes that understanding how economic conditions affect the marketplace provides managers with vital tools necessary for making effective business decisions.
Outline:
Abstract
Economic Issue
Economic Influences
Supply and Demand The Invisible Hand Theory
Conclusion
From the Paper "Pearlstein, the author of the article, reports that the price for ethanol has reached an all time high of $2.90 per gallon which is twice as high as a year ago. With the manufacturing cost around $1.25 per gallon, the operating margin exceeds 50%. Ethanol is a colorless, volatile alcohol derived from the fermentation of grains and sugars or by the hydration of ethylene. Ethanol can serve as an environmentally friendly substitute for gasoline. Many oil companies are exploring options for production of ethanol to mix it with gasoline to reduce costs. Data indicate that adding ethanol to gasoline would reduce current prices at the pump by 30 cents per gallon (Donaldson, 2006 12)."
Abstract This paper argues that, while on the surface, rentcontrol appears to protect the tenants from unreasonable rental charges by their landlords, when one peels away the top layer and examines the underpinnings of the concept, one discovers that rentcontrol laws actually have a negative impact on those they are designed to help. The paper presents a detailed examination of rentcontrol and the issues that it presents. The author explores several cities and the impact that rentcontrol has had on both landlords and tenants in those areas.
From the Paper "Recent changes in the law in Santa Monica were supposed to protect landlords by allowing them to charge market rent once a rent controlled tenant moved out. What it did instead is set the stage for slumlord mentality as many landlords stopped making needed repair in the hope that the tenant would get fed up and move out and the landlord could then rent the unit for market rent price."
Abstract This paper looks at the issue of rentcontrol in cities in America. The writer looks at the benefits of rentcontrol for tenants and cites that many cities do not have rentcontrol and some tenants' and liberal groups believe it should be instituted. The paper then provides the counter argument, from the landlord's point of view.
From the Paper "Rent control is an idea with great appeal for the beleaguered tenant who feels that rents are too high and that there has been no government effort to correct the problem. Advocates see it as a way of imposing fairness, but in truth it imposes unfairness and disparity between people who have rented for a long time and new renters. It reduces the incentives landlords have to repair their buildings and to make improvements. It takes the profit out of being a landlord, and it effectively eliminates competition in housing in urban regions. In many cases, it has also created a black market in sublets, with those paying little for rent because they have rent-controlled apartments renting them for higher prices to others illegally. An interview with a 50-year old male, referred to as the Landlord, with experience of the rent control situation in santa Monica, illuminates the landlord side of the issue, while it is usually the renter's side that is represented in arguments for rent control."
Abstract This paper discusses the petroleum industry and specifically that of fuel and gasoline products in relation to the economic theory of supply and demand. The paper examines supply and demand as separate components and how consumer conceptions of wants, needs, and desires can be, and often are, manipulated to keep the petroleum industry from being fully governed by normal market forces.
From the Paper "Gas, Economics, and the Power of Demand The Nature of Demand for Fuel Overview The character of the concept of supply and demand in economic terms is confined by the wants, needs, and desires of the individuals in a given society. This character of supply and demand is further restrained by scarcity in that even if supply is strong the relative scarcity of an item has an intrinsic effect on its value. Of all commodities in the world today fuel, alone, seems to operate within its own unique parameters beyond the standard confines of supply and demand. When Adam Smith averred that man was a trader at heart he implied that man seemed to define the value of things: It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest."
Abstract This paper discusses the current trends pertaining to global supply and demand for oil. It explains why changes occur in the supply, demand and pricing of gasoline which is a derivative of crude oil. The paper specifically examines two articles - Ibrahim Oweis' "Supply, Demand and Oil" and "Demand for Oil Outstripping Supply," written by Richard Gwyn.
Table of Contents:
Article Summaries
First Article Summary
Second Article Summary
Why These Changes Occur
From the Paper "In conclusion, the United States is understood to be one of the world's largest consumers of natural fuels and that our demand for oil indeed outstrips the supply, which might lead to negative pressure on the economy of the United States. China, on the other hand, is considered as the world's second-largest demand-driving country. The article speaks about some possible ways to limit the growing demand for oil and comments on taxation and legal procedures to reduce this demand. The article concludes with a warning that the world must react quickly, now, to position itself for perhaps on of the greatest forthcoming economical declines and violent dislocations of society ever."
Abstract This paper examines the concept of supply and demand by giving clear definitions and examples. Basic economic terminology is presented and is further illustrated with concrete examples. The paper uses the demand for physicians in the US to describe supply and demand, with practical ideas of how to increase supply.
From the Paper "The rate of supply and demand may vary depending on the trend in the environment. One instance is when the people in one community are so keen in holding or keeping some supplies for their own future personal use. While the people are keeping their stocks on hold, there will surely be dramatic changes in both the supply and demand, as well on the price of the commodities (Lee, 1992)."
Abstract The paper discusses the economic fundamentals of the law of supply and demand as well as of perfect competition to explore current and future economic dynamics in the specialty coffee market. The paper relates that demand for specialty coffees has experienced growth for some time, but suppliers are not receiving the expected increase in price because there is excess supply. The paper discusses how suppliers are turning to fair trade market agreements to get a better price, but points out that ultimately, production will have to adjust to the market realities of perfect competition where there would be production cutbacks and/or market exits.
Outline:
Introduction
Economic Theory
Demand in the Specialty Coffee Market
Supply in the Specialty Coffee Market
Conclusion
From the Paper "The laws of supply and demand are the most important determinant of market structures (Economics basics: demand and supply). The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good and vice versa. The law of supply states that when the price of a good rises, holding other factors constant, producers will be willing to supply more of the product. Price, therefore, is determined by supply and demand. Economic equilibrium refers to a point where a market for a product has attained the price where the amount supplied of a certain product equals the quantity demanded."
