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American Economic Journal: Microeconomics: Vol. 6 No. 1 (February 2014)

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House Allocation with Overlapping Generations

Article Citation

Kurino, Morimitsu. 2014. "House Allocation with Overlapping Generations." American Economic Journal: Microeconomics, 6(1): 258-89.

DOI: 10.1257/mic.6.1.258

Abstract

Many real-life applications of house allocation problems are dynamic. For example, each year college freshmen move in and seniors move out of on-campus housing. Each student stays on campus for only a few years. A student is a "newcomer" in the beginning and then becomes an "existing tenant". Motivated by this observation, we introduce a model of house allocation with overlapping generations. In terms of a dynamic rule without monetary transfers, we examine two static rules of serial dictatorship and top trading cycles. We support these seniority-based rules in terms of their dynamic Pareto efficiency and incentive compatibility

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Authors

Kurino, Morimitsu (WZB, Berlin)

JEL Classifications

D13: Household Production and Intrahousehold Allocation
D61: Allocative Efficiency; Cost-Benefit Analysis
D82: Asymmetric and Private Information; Mechanism Design

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