Monday, October 12, 2009

Mobility and Transaction Cost

I have always preferred to stay close to where I worked although it has not always been possible. Commuting has always been a pain.

A recent news that about a third of the Indians now are migrants struck my attention. If I migrate, I should be able to sell my residence in one place and buy it in another.

Why should it be so hard?

Why can't the transaction cost be reduced? Why not charge stamp duty on the incremental value, like VAT and not on the cost of the transaction?

I would expect it to moderate prices of real estate.

May be one day our states and municipalities will change.

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