Transaction Costs in Housing Markets

Research, Preprint English OPEN
van Ommeren, Jos (2008)
  • Publisher: Tinbergen Institute Amsterdam and Rotterdam
  • Subject: transaction costs | Welt | residential mobility | Transaktionskosten | Soziale Wohnungspolitik | R21 | R23 | rent control | Housing market | Bibliometrie | Housing market, residential mobility, transaction costs, transaction taxes, rent control | transaction taxes | Wohnungswechsel
    • jel: jel:R23 | jel:R21
      ddc: ddc:330

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.
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