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On the design of rent control

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1 Author(s)
Varaiya, P. ; University of California, Berkeley, CA, USA

This paper presents a procedure for designing a rent control schedule which achieves reduction in rents while it simultaneously discourages under-maintenance leading to deterioration of the housing stock. The focus of the procedure is to understand the reaction of a profit-maximizing landlord to a given rent schedule and then to design the schedule so as to induce a favorable reaction. This is formulated mathematically as an inverse problem of optimal control.

Published in:

Automatic Control, IEEE Transactions on  (Volume:21 ,  Issue: 3 )