Abstract
The introduction of fixed-term tenant contract can improve the resource allocation through the contract based on freedom of contract, thereby relaxing the prescription for protection of tenants (the justifiable reason and the rent control) under the tenant law. Yet there exists wide recognition gap between economists and lawyers about the economic effect of new-type contract on the supply of large-size housing stock for rent. Even among economists controversy arises concerning the irrelevance theorem on the tenant law. This paper intends to clarify the reason why the difference of opinion appears. From the viewpoint of filling the gap, we examine the policy recommendation of the Report by the Housing Council in 2000.
