Table 3 Two-stage least squares...

Table 3

Two-stage least squares instrument variable (IV) model, fixed effects

	(1)	(2)
	HP	ROT
IV ROT	0.404^**
IV ROT	(2.99)
IV HP		−0.00786
IV HP		(−0.03)
Unemp	−0.0283^***	0.00455
Unemp	(−5.24)	(0.44)
Rentals	0.0301	−0.0530^*
Rentals	(1.41)	(−2.04)
Density	0.340^**	−0.425^**
Density	(2.59)	(−3.28)
Urban	−0.171^**	0.0351
Urban	(−3.10)	(0.42)
Pop	0.263^*
Pop	(2.28)
Inc	0.137	0.758^***
Inc	(1.03)	(4.38)
Tax	0.523^*	−1.410^***
Tax	(2.25)	(−7.81)
Constant	4.648^***	−5.776^***
Constant	(3.47)	(−3.87)
Fixed municipalities	Yes	Yes
Fixed-year effects	Yes	Yes
AIC	−8038.7	−5972.1
Hausman test	0.00	0.00
F-test of excluded instruments	30.73	19.42
Andersson Canonical correlation LM statistics	33.01	20.91
Cragg-Donald Wald F statistics	30.73	19.42
Stock-Yogo critical values	16.38	16.38
Observations	4,060	4,060

	(1)	(2)
	HP	ROT
IV ROT	0.404^**
IV ROT	(2.99)
IV HP		−0.00786
IV HP		(−0.03)
Unemp	−0.0283^***	0.00455
Unemp	(−5.24)	(0.44)
Rentals	0.0301	−0.0530^*
Rentals	(1.41)	(−2.04)
Density	0.340^**	−0.425^**
Density	(2.59)	(−3.28)
Urban	−0.171^**	0.0351
Urban	(−3.10)	(0.42)
Pop	0.263^*
Pop	(2.28)
Inc	0.137	0.758^***
Inc	(1.03)	(4.38)
Tax	0.523^*	−1.410^***
Tax	(2.25)	(−7.81)
Constant	4.648^***	−5.776^***
Constant	(3.47)	(−3.87)
Fixed municipalities	Yes	Yes
Fixed-year effects	Yes	Yes
AIC	−8038.7	−5972.1
Hausman test	0.00	0.00
F-test of excluded instruments	30.73	19.42
Andersson Canonical correlation LM statistics	33.01	20.91
Cragg-Donald Wald F statistics	30.73	19.42
Stock-Yogo critical values	16.38	16.38
Observations	4,060	4,060

Note(s): p < 0.05, **p < 0.01, ***p < 0.001. The dependent variable is house prices (HP) in the first model and renovation per capita in the second model (ROT). The independent variables included are unemployment (unemp), the share of rental dwelling of total housing stock (rental), population density (density), urbanisation (urban), population (pop), income (inc), and income tax (tax). Municipality spending on culture per capita is the instrument variable for the endogenous variable house price, and the cost of housing construction (excluding the cost of land) is the instrument variable for renovation. All variables are transformed into a natural logarithm. The statistics for t are in parentheses. STATA 17 has been used. Commands: ivreg2, xtivreg, and hausman

Source(s): Secondary data from Statistics Sweden and calculations by the authors

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