New Evidence of the Effect of Transaction Costs on Residential Mobility

Jos van Ommeren, Michiel van Leuvensteijn

Research output: Working paperProfessional

Abstract

Transaction costs have attracted considerably attention in the theoretical literature on residential mobility. In many European countries, these costs mainly consist of ad-valorem transaction costs. In the current paper, we demonstrate empirically for the Netherlands that the transaction costs have a strong negative effect on the owners' probability of moving. Under a range of different specifications, it appears that a one percent-point increase in the value of transaction costs - as a percentage of the value of the residence - decreases ownership to ownership residential mobility rates by eight percent. The estimates imply that ownership to ownership mobility rates would be 50 percent higher in the absence of the current six percent ad-valorem buyer transaction tax. Our estimates are consistent with the observation that ad-valorem transaction costs mainly consist of buyer transaction costs.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2002

Publication series

NameDiscussion paper TI
No.02-117/3

Fingerprint

Residential mobility
Transaction costs
Ownership
Buyers
European countries
The Netherlands
Tax
Owners
Costs

Cite this

van Ommeren, J., & van Leuvensteijn, M. (2002). New Evidence of the Effect of Transaction Costs on Residential Mobility. (Discussion paper TI; No. 02-117/3). Amsterdam: Tinbergen Instituut.
van Ommeren, Jos ; van Leuvensteijn, Michiel. / New Evidence of the Effect of Transaction Costs on Residential Mobility. Amsterdam : Tinbergen Instituut, 2002. (Discussion paper TI; 02-117/3).
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van Ommeren, J & van Leuvensteijn, M 2002 'New Evidence of the Effect of Transaction Costs on Residential Mobility' Discussion paper TI, no. 02-117/3, Tinbergen Instituut, Amsterdam.

New Evidence of the Effect of Transaction Costs on Residential Mobility. / van Ommeren, Jos; van Leuvensteijn, Michiel.

Amsterdam : Tinbergen Instituut, 2002. (Discussion paper TI; No. 02-117/3).

Research output: Working paperProfessional

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van Ommeren J, van Leuvensteijn M. New Evidence of the Effect of Transaction Costs on Residential Mobility. Amsterdam: Tinbergen Instituut. 2002. (Discussion paper TI; 02-117/3).