In their new discussion paper "The Impact of the Chainsaw-Liberation on the Rental Housing Market in Buenos Aires", Martin Elfert and Stephan Thomsen examine the effects of Argentina’s repeal of the rental law in December 2023, one of the most radical housing policy reforms in Latin America in recent decades. Using weekly data for Buenos Aires from 2023–2024 and applying a Regression Discontinuity Design, the study provides causal evidence on short-term supply and price effects. The empirical results indicate a substantial revival of rental housing supply, while nominal and real rents declined, contrary to theoretical expectations of sharp increases. These findings suggest that deregulation mobilized previously withheld units, alleviating excess demand. Given Argentina’s volatile context, conclusions remain preliminary yet policy-relevant. Nevertheless, the paper demonstrates that economic policy of deregulation based on economic reasoning (both theoretical and empirical) leads to beneficial effects.
The discussion paper is available as Hannover Economic Paper (HEP) No. 741 and IZA Discussion Paper No. 18107, Bonn.
