How does immigration affect housing costs in Switzerland?

Swiss Journal of Economics and Statistics

Table 7 Housing prices and immigration—cantons from 1998–2016: IV regressions.

Dep. var.:	\(\Delta \, \text {ln} \, HP_{it}\)		\(\Delta \, \text {ln} \, AP_{it}\)		\(\Delta \, \text {ln} \, RP_{it}\)
	(1)	(2)	(3)	(4)	(5)	(6)
\(\frac{\Delta I_{it}}{Pop_{it-1}}\)	3.865	3.925\(^{*}\)	6.285	6.743	7.407\(^{**}\)	7.382\(^{**}\)
	[0.115]	[0.097]	[0.319]	[0.274]	[0.037]	[0.024]
\(\Delta \, u_{it-1}\)	\(-\)0.287		\(-\)0.030		1.944
	[0.557]		[0.958]		[0.109]
\(\Delta \, \text {ln} \, wage_{it-1}\)		0.607\(^{**}\)		0.399		0.124
		[0.041]		[0.167]		[0.600]
\(\Delta \, \text {ln} \, CP_{it-1}\)		0.272\(^{*}\)		\(-\)0.289		0.197
		[0.061]		[0.218]		[0.595]
\(\Delta \, \text {ln} \, VAC_{it-1}\)		\(-\)0.005		0.008		0.009
		[0.503]		[0.331]		[0.588]
Year FE	Yes	Yes	Yes	Yes	Yes	Yes
\(Obs\)	442	442	442	442	427	427
\(R^{2}\)	0.406	0.422	0.246	0.226	0.071	0.061
K-P F-stat	21.98	21.90	21.98	21.90	16.91	16.18

p-values in brackets. Standard errors clustered by cantons are estimated by the wild bootstrap. The regressions are run at the cantonal level for the period from 1998–2016. \(\Delta\) 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
Significance levels: \(^{*}\) \(p<0.10\), \(^{**}\) \(p<0.05\), \(^{***}\) \(p<0.01\)