Rent Control Act: A Law and Economics Approach

Abstract

Two years after the enactment of Law 27.551, commonly known in Spanish as the “Ley de Alquileres”, its results have not been satisfactory to either of tenants nor landlords. The purpose of this paper is to explore objective tools that can be used to determine —with more precision than mere intuition— the effects caused by laws on the behavior of landlords and tenants, and, thus, on the market. Law and Economics may be a viable option to provide lawmakers with empirical evidence that contributes to the design of more effective legislation.