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Analysis of price and quantity competition between public and private housing firms in Sweden

Englesson, Noah LU (2022) NEKH04 20221
Department of Economics
Abstract
This bachelor’s thesis concerns the Swedish housing market and how the publicly and privately owned firms may differ in goals, costs, and actions. Building upon a theoretical foundation of different models of competition and the Lerner Index’s measurement of monopoly power, an empirical investigation is made into whether competition on the Swedish housing market mainly expresses itself in price, quantity, or both, as well as how competition may vary across different kinds of municipalities. Using multiple variable OLS regression, it is shown that competition on the Swedish housing market, at least between public and private firms, is conducted in terms of price and not quantity. Median yearly rent is found to decrease as public market... (More)
This bachelor’s thesis concerns the Swedish housing market and how the publicly and privately owned firms may differ in goals, costs, and actions. Building upon a theoretical foundation of different models of competition and the Lerner Index’s measurement of monopoly power, an empirical investigation is made into whether competition on the Swedish housing market mainly expresses itself in price, quantity, or both, as well as how competition may vary across different kinds of municipalities. Using multiple variable OLS regression, it is shown that competition on the Swedish housing market, at least between public and private firms, is conducted in terms of price and not quantity. Median yearly rent is found to decrease as public market ownership concentration increases, and that rents increase slightly with population size, although at different rates depending on the type of municipality. Using an official categorization for distinguishing Swedish municipalities into different levels of urbanization, it is shown that greater urbanization is correlated with higher expected rent at zero public ownership and rents that are less responsive to increases in either local public sector ownership or population increases, relative to rents in rural municipalities. (Less)
Please use this url to cite or link to this publication:
author
Englesson, Noah LU
supervisor
organization
course
NEKH04 20221
year
type
M2 - Bachelor Degree
subject
keywords
Housing market, monopoly power, public sector, competition, Lerner Index
language
English
id
9084413
date added to LUP
2022-10-10 09:17:13
date last changed
2022-10-10 09:17:13
@misc{9084413,
  abstract     = {{This bachelor’s thesis concerns the Swedish housing market and how the publicly and privately owned firms may differ in goals, costs, and actions. Building upon a theoretical foundation of different models of competition and the Lerner Index’s measurement of monopoly power, an empirical investigation is made into whether competition on the Swedish housing market mainly expresses itself in price, quantity, or both, as well as how competition may vary across different kinds of municipalities. Using multiple variable OLS regression, it is shown that competition on the Swedish housing market, at least between public and private firms, is conducted in terms of price and not quantity. Median yearly rent is found to decrease as public market ownership concentration increases, and that rents increase slightly with population size, although at different rates depending on the type of municipality. Using an official categorization for distinguishing Swedish municipalities into different levels of urbanization, it is shown that greater urbanization is correlated with higher expected rent at zero public ownership and rents that are less responsive to increases in either local public sector ownership or population increases, relative to rents in rural municipalities.}},
  author       = {{Englesson, Noah}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Analysis of price and quantity competition between public and private housing firms in Sweden}},
  year         = {{2022}},
}