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In: Journal of Urban Economics, Band 72
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In: CESifo Working Paper Series No. 6942
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In: The Journal of Industrial Economics, Band 66, Heft 4, S. 763-815
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In: CEPR Discussion Paper No. DP12899
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In: NET Institute Working Paper No. 13-07
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In: Management Science (2013) Vol. 59(9), 2019-2035
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In: American Economic Journal: Economic Policy 9(2): 1-27 (2017)
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In: Journal of Public Economics 115: 62-71 (2014)
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In: CEPR Discussion Paper No. DP15102
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In: The economic journal: the journal of the Royal Economic Society, Band 133, Heft 649, S. 477-492
ISSN: 1468-0297
Abstract
We study residential lease payments during the COVID-19 pandemic. A survey of Israeli renters shows that nearly one in eight did not pay full rent during the first lockdown in March–April 2020. These households held back two-thirds of their contractually due rent on average. Financially fragile households with large income cuts withheld a greater share. Both formal and relational aspects of the landlord-tenant relationship affected payments: tenants paid more of their rent if their leases included formal provisions against non-payment, and less if they had strong relationships with their landlords. We use bargaining and relational contract theories to explain our findings.