Template-type: ReDIF-Paper 1.0
Author-Name: Elizabeth Steiner
Author-Name-First: Elizabeth
Author-Name-Last: Steiner
Author-Person: pst643
Title: Estimating a stock-flow model for the Swiss housing market
Abstract: This paper analyses the development of housing market imbalances, housing prices and residential investment in Switzerland within a stock-flow framework. In the long run, the desired level of residential capital stock and the existing residential capital stock revert. Empirical results indicate, however, that housing demand can diverge from the existing supply for several years due to the slow adjustment of the residential capital stock to shocks. In the short run, the market therefore has to be cleared by price adjustments. And indeed, it can be shown empirically that changes in prices are significantly and strongly dependent on the level of stock imbalances. Furthermore, housing prices prove to be an important determinant of residential investment, which in turn drives the adjustment process of the residential capital stock towards its desired level.
Length: 41 pages
Creation-Date: 2010
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2010/working_paper_2010_08
File-Format: text/html
Number: 2010-08
Classification-JEL: C32, E22, E32, R21, R31
Keywords: Housing Demand, Housing Supply, Residential Investment, Market disequilibrium, Housing prices
Handle: RePEc:snb:snbwpa:2010-08