Do differences in rental rates compensate for unequal living conditions?

Equality of living conditions is a politically institutionalized goal in Germany. Due geographical inequality in income levels and in the availability of services in the area of “subsistence support”, politicians are claiming the necessity of intervention to overcome regional disparities. However, actual implementation of the goal of equality seems to be increasingly difficult in view of current migration tendencies and demographic developments. This article starts with the theory of geographical balances and analyzes the extent to which rental rates in the market process reflect regional differences in income and amenities.

01. February 2010

Authors Dominik Weiß

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