Saturday, September 11, 2010

University's Reverse the Intent of Rent Control

Very clever.  Rent control, a misguided attempt to allocate resources by bureaucracy rather than markets, always results in distortions.  But universities have found a way to purchase rent controlled property at below market rates and earn above market rents, thwarting the intent of the bureaucrats intent on distorting the market for the property.

Greg Mankiw, hat tip to Luke Froeb

If you like this, you'll like Managerial Econ.

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