Transaction Costs in Housing Markets

Tinbergen Institute Discussion Paper No. 08-099/3

16 Pages Posted: 18 Oct 2008

See all articles by Jos van Ommeren

Jos van Ommeren

Tinbergen Institute; Vrije Universiteit Brussel (VUB)

Date Written: October 15, 2008

Abstract

According to economic theory, there are no strong reasons to tax (or to subsidise) residential moves, although low levels of taxation may be potentially justified to deal with the presence of externalities and economic stability. This is in contrast to practise in most countries where governments have created strong barriers to moving (transaction taxes, rent control) which induces substantial transaction costs. Likely, the welfare losses due to these government-induced transaction costs are substantial.

Keywords: R21, R23

JEL Classification: Housing market, residential mobility, transaction costs, transaction taxes, rent control

Suggested Citation

van Ommeren, Jos and van Ommeren, Jos, Transaction Costs in Housing Markets (October 15, 2008). Tinbergen Institute Discussion Paper No. 08-099/3, Available at SSRN: https://ssrn.com/abstract=1285971 or http://dx.doi.org/10.2139/ssrn.1285971

Jos Van Ommeren (Contact Author)

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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