) are polynomials inside the lag operator. We could make 5 modifications to Equation (five) to capture the potential of deviations from The straightforward person cost product and to include the results of regulation and financial structure. Very first, in theory, shifts while in the demand from customers for housing companies must be mirrored in lease: a optimistic shift in desire, by way of example, would raise rents, and by means of the user cost romance, housing rates really should value.
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