Cuff, Katherine; Marceau, Nicolas - Centre Interuniversitaire sur le Risque, les Politiques … - 2007
We develop a model of a competitive rental housing market with endogenous default due to income uncertainty. There is a …. Consequently, some tenants may default on their rental payments. We show that tenancy default can explain persistent excess demand … individuals are simply unable to find rental housing. We study both government regulations affecting the cost of default to the …