THE EFFECTS OF RENT CONTROL ON THE LEVEL OF RENTS AND THE LEVEL OF HOUSE PRICES IN DENMARK

The article identifies rationed and unrationed regions of the Danish h ousing market. In rural districts owner-occupier housing dominates, wh ereas rent-controlled housing is pre-dominant in the capital and in th e old provincial towns. The 275 municipalities ave classified as ratio ned/unrationed on the basis of ratios of actual rents to computed mark et values. In addition, the effects of rent control on both the level of rents and the level of house prices ave estimated on the basis of d ata for rents and for prices of ownr-occupied homes using a representa tive agent consumption model.