However, most equilibrium models of frictional unemployment (21) suggest that the natural vacancy rate increases when the Beveridge curve shifts out.
Secondly, even if it were persistent, the shift at the current level of the job openings rate is higher than at any plausible new natural vacancy rate.
The long-run natural vacancy rate is the vacancy rate at which rents will be neither rising nor falling.
Smith, "The Price-Adjustment Process for Rental Housing and Natural Vacancy Rate," American Economic Review, 85:4, September 1983, 779-786.
Constants): [Beta] is an agent intertemporal discount factor, Vn = natural vacancy rate, assumed to be fixed at 5 percent.
The Price Adjustment Process for Rental Housing and the Natural Vacancy Rate, AER, September, pp.
In recent studies, Wheaton and Torto|24~ and Voith and Crone|21~ examine office rent changes and the natural vacancy rate.
Rental Housing Markets and the Natural Vacancy Rate.
Dunning, Natural vacancy rates
in Canadian urban centres, Will Dunning Inc.