Immigration and Housing Prices in Swedish Counties
(2019) NEKH02 20191Department of Economics
- Abstract
- Immigration and housing prices are two topics that have been subject to vivid discussion for politicians and people in Sweden in the last decade. The country has at the same time experienced a sharp increase in both immigration and housing prices. Policies have been implemented by the Swedish government to obstruct the rapid development in both areas. Although these phenomena continues to affect and engage a lot of people, the literature on the relation between the two is scarce. In this paper, we estimate the relation between immigration and housing prices with a fixed-effects model using a panel data set of all 21 counties in Sweden in the period 2000-2015. To account for endogeneity issues in our main explanatory variable, we adopt a... (More)
- Immigration and housing prices are two topics that have been subject to vivid discussion for politicians and people in Sweden in the last decade. The country has at the same time experienced a sharp increase in both immigration and housing prices. Policies have been implemented by the Swedish government to obstruct the rapid development in both areas. Although these phenomena continues to affect and engage a lot of people, the literature on the relation between the two is scarce. In this paper, we estimate the relation between immigration and housing prices with a fixed-effects model using a panel data set of all 21 counties in Sweden in the period 2000-2015. To account for endogeneity issues in our main explanatory variable, we adopt a “shift-share” instrumental variable strategy based on historical settlement patterns. The OLS results suggest that an increase in immigration of 1% relative to the total population in a county is associated with an increase in housing prices between 2,41-3,82%. However, the results are insignificant. When testing for relevance, our instrument turns out to be weak. Hence, the IV estimator is unreliable and the results are inconclusive. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8976574
- author
- Fredriksson, Viktor LU and Fakhravar, Arian
- supervisor
- organization
- course
- NEKH02 20191
- year
- 2019
- type
- M2 - Bachelor Degree
- subject
- keywords
- immigration, housing prices, Sweden, shift-share
- language
- English
- id
- 8976574
- date added to LUP
- 2019-06-05 10:59:45
- date last changed
- 2019-06-05 10:59:45
@misc{8976574,
abstract = {{Immigration and housing prices are two topics that have been subject to vivid discussion for politicians and people in Sweden in the last decade. The country has at the same time experienced a sharp increase in both immigration and housing prices. Policies have been implemented by the Swedish government to obstruct the rapid development in both areas. Although these phenomena continues to affect and engage a lot of people, the literature on the relation between the two is scarce. In this paper, we estimate the relation between immigration and housing prices with a fixed-effects model using a panel data set of all 21 counties in Sweden in the period 2000-2015. To account for endogeneity issues in our main explanatory variable, we adopt a “shift-share” instrumental variable strategy based on historical settlement patterns. The OLS results suggest that an increase in immigration of 1% relative to the total population in a county is associated with an increase in housing prices between 2,41-3,82%. However, the results are insignificant. When testing for relevance, our instrument turns out to be weak. Hence, the IV estimator is unreliable and the results are inconclusive.}},
author = {{Fredriksson, Viktor and Fakhravar, Arian}},
language = {{eng}},
note = {{Student Paper}},
title = {{Immigration and Housing Prices in Swedish Counties}},
year = {{2019}},
}