Since you didn't mention it, here is a good example of the well-off being better able to compete for them: http://gregmankiw.blogspot.com/2010/09/dastardly-clev

Since you didn't mention it, here is a good example of the well-off being better able to compete for them: http://gregmankiw.blogspot.com/2010/09/dastardly-clever-scheme.html http://gregmankiw.blogspot.com/2010/09/dastardly-clever-sche.... To quote the final sentence: In the end, the goal of the rent control laws is thwarted (the low rents are enjoyed by well-paid tenured faculty rather than the needy), the income tax laws are thwarted (a sizable part of compensation is untaxed), and all this is done by a nonprofit institution (the university) whose ostensible purpose is to serve the public interest.