How does immigration affect housing costs in Switzerland?

Swiss Journal of Economics and Statistics

Table 4 House prices and immigration—MS-regions from 1985–2016: OLS and IV regressions.

	OLS regressions				IV regressions
Dep. var.:	\(\Delta \, \text {ln} \, HP_{it}\)		\(\Delta \, \text {ln} \, AP_{it}\)		\(\Delta \, \text {ln} \, HP_{it}\)		\(\Delta \, \text {ln} \, AP_{it}\)
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
\(\frac{\Delta I_{it}}{Pop_{it-1}}\)	0.918\(^{***}\)	0.449\(^{*}\)	0.948\(^{***}\)	0.269	1.536\(^{***}\)	\(-\)2.589\(^{***}\)	3.696\(^{***}\)	0.478
	[0.000]	[0.076]	[0.000]	[0.266]	[0.006]	[0.008]	[0.000]	[0.473]
\(\frac{\Delta I_{it}}{Pop_{it-1}} \times {\textbf {1}} (t \ge 2002)\)		0.865\(^{**}\)		1.251\(^{***}\)		6.907\(^{***}\)		5.388\(^{***}\)
		[0.030]		[0.001]		[0.000]		[0.004]
\(\Delta \, u_{it-1}\)	\(-\)0.206	\(-\)0.223	\(-\)0.047	\(-\)0.072	\(-\)0.185	\(-\)0.335\(^{*}\)	0.047	\(-\)0.070
	[0.172]	[0.137]	[0.754]	[0.634]	[0.207]	[0.062]	[0.775]	[0.656]
Year FE	yes	yes	yes	yes	yes	yes	yes	yes
\(Obs\)	3279	3279	3279	3279	3279	3279	3279	3279
\(R^{2}\)	0.538	0.540	0.634	0.637	0.535	0.461	0.573	0.554
K-P F-stat					11.52	5.60	11.52	5.60
S-W F-stat, immigration						11.41		11.41
S-W F-stat, interaction						13.25		13.25

p-values in brackets. Standard errors are clustered by MS-regions. The regressions are run at the MS-regional level for the period from 1985–2016. \(\Delta\) indicates first differences. The instrument is the change in the predicted stock of foreigners divided by initial population. The stock of foreigners is predicted by the settlement pattern of immigrants in 1980. The K-P F-stat is the Kleibergen-Paap rk Wald F-statistic. The S-W F-stat is the Sanderson and Windmeijer (2016) multivariate F-test of excluded instruments for weak identification of each endogenous regressor separately; immigration and interaction refer to endogenous regressors \(\Delta I_{it}/Pop_{it-1}\) and \(\Delta I_{it}/Pop_{it-1} \times {\textbf {1}} (t \ge 2002)\), respectively
Significance levels: \(^{*}\) \(p<0.10\), \(^{**}\) \(p<0.05\), \(^{***}\) \(p<0.01\)