New Evidence of the Effect of Transaction Costs on Residential Mobility*

Ommeren, Jos van; Leuvensteijn, Michiel van

doi:10.1111/j.0022-4146.2005.00389.x

Cited by 86 publications

(57 citation statements)

References 38 publications

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“…On the empirical side, Van Ommeren and Van Leuvensteijn (2005) provide indirect evidence on the mobility effects of transfer taxes using individual panel data for the Netherlands. They estimate a competing risks hazard model of moving to renting or owning with house values as an explanatory variable and use a theoretical model to infer the effect of transaction costs.…”

Section: Introductionmentioning

confidence: 99%

Transfer taxes and household mobility: Distortion on the housing or labor market?

Hilber

Lyytikäinen²

2017

Journal of Urban Economics

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We estimate the effect of the UK Stamp Duty Land Tax (SDLT) -a transfer tax on the purchase price of property or land -on different types of household mobility using micro data. Exploiting a discontinuity in the tax schedule, we isolate the impact of the tax from other determinants of mobility. We compare homeowners with self-assessed house values on either sides of a cut-off value where the tax rate jumps from 1 to 3 percent. We find that a higher SDLT has a strong negative impact on housing-related and short distance moves but does not adversely affect job-induced or long distance mobility. Overall, our results suggest that transfer taxes may mainly distort housing rather than labor markets.

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Section: Introductionmentioning

confidence: 99%

Transfer taxes and household mobility: Distortion on the housing or labor market?

Hilber

Lyytikäinen²

2017

Journal of Urban Economics

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“…However, there is ample evidence that households face substantial residential moving cost (Weinberg at al., 1981;Van Ommeren and van Leuvensteijn, 2005). As a result, households that experience a change in household income and therefore prefer to change their commute will usually not move residence, so commuting distance 10 For example, if income increases one year and decreases the following year by the same amount, annual measures of change in income capture transitory changes in income.…”

mentioning

confidence: 99%

Do rich households live farther away from their workplaces?

Gutiérrez‐i‐Puigarnau

Mulalic

Ommeren

2014

J Econ Geogr

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may 13-2-2012 AbstractOne of the classic predictions of the urban economic theory is that high-income and low-income households choose different residential locations and therefore, conditional on workplace location, have different commuting patterns. Empirical tests of this theory are not standard, due to reverse causation and lack of good control variables. In the current paper, estimates of household income on commuting distance are derived using residential changes in distance for a given workplace, so reverse causation is eliminated. Our results show that the long-run income elasticity of commuting distance is positive and around 0.18. The results suggest that the elasticities are higher for single wage-earners than for dual wage-earners and higher for females than for males.

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“…Preferential fiscal policy treatment of a specific housing tenure may influence labor market outcomes (e.g., Lundborg & Skedinger, 1999;Haurin & Gill, 2002;Alpanda & Zubairy, 2016). Van Ommeren & Van Leuvensteijn (2005) show that the levy of real estate transfer tax lowers the relocation probability of owner-occupiers. OECD (2011) suggests that portable housing allowances do not hinder residential mobility to the same extent as the direct provision of housing services by the government or government-sponsored entities.…”

Section: Housing-related Fiscal Policy and Societal Outcomesmentioning

confidence: 94%

“…Housing transaction costs can reduce residential mobility (Haurin & Gill, 2002), and may create lock-in effects (Lundborg & Skedinger, 1999). Owner occupiers' moving costs are often higher and therefore their mobility tends to be lower than unsubsidized tenants' mobility (e.g., Van Ommeren & Van Leuvensteijn, 2005;Coulson & Fisher, 2009). Residential mobility tends to fall with age (Andrews et al, 2011).…”

Section: Housing Tenure and Societal Implicationsmentioning

confidence: 99%

Housing, Finance, Policy and the Wider Economy

Winkler¹

2017

JMS

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Building an understanding of the complex dynamics between housing, finance, policy and the wider economy is a critical step towards the development of a strategy that permits policy makers to leverage resources and enable the housing market to function better in the pursuit of economic, financial and social objectives. Powerful real, legislative and financial circuits suggest that an enabling strategy for housing can support societal progress and wellbeing. By summarizing the key findings in the existing theoretical and empirical literature, this study helps to explain the complex interrelations between housing, finance, policy and the wider economy by using a simple model; it also deals with housing-related policies and their effects, examines the rational for housing market regulation, investigates whether housing market corrections threaten financial and macroeconomic stability, and asks whether policies are efficacious at controlling housing market outcomes. The important takeaways from this study are: (i) policy setting should be evidence-based, which necessitates further efforts to address existing data deficiencies; (ii) finance trends are in flux and policy effects can be asymmetric, which necessitates regular and critical housing market reviews to identify misallocation, dislocation and reform needs; (iii) improvement in the functioning of the housing market requires a coordinating authority that takes steps to reconcile the various housing market stakeholders' mutually incompatible interests and arrange for concerted policy and institutional reforms. The study closes with an outlook on future research.

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New Evidence of the Effect of Transaction Costs on Residential Mobility*

Cited by 86 publications

References 38 publications

Transfer taxes and household mobility: Distortion on the housing or labor market?

Transfer taxes and household mobility: Distortion on the housing or labor market?

Do rich households live farther away from their workplaces?

Housing, Finance, Policy and the Wider Economy

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