Table 4 Manski model, fixed effects (1)...

Table 4

Manski model, fixed effects

	(1)	(2)
	HP	ROT
Main
IV ROT	0.665^*** (3.99)
IV HP		0.209 (0.73)
Unemployment	−0.0228^*** (−5.05)	0.00511 (0.50)
Rentals	0.0616^** (3.15)	−0.0338 (−1.30)
Density	0.510^*** (3.82)	−0.642^*** (−5.15)
Urban	−0.167^*** (−3.39)	−0.00621 (−0.07)
Population	0.292^** (2.71)
Income	0.113 (0.78)	0.735^*** (4.12)
Tax	1.131^*** (4.34)	−0.837^*** (−4.08)
W
IV ROT	−0.00323 (−0.60)
Unemployment	−0.00704 (−0.64)	0.00306 (0.18)
Rentals	−0.117^** (−2.75)	0.0319 (0.52)
Density	0.171 (0.58)	0.157 (0.40)
Urbanisation	−0.230 (−1.51)	0.235 (1.07)
Population	−0.256 (−0.81)	0.271 (0.64)
Income	0.452^** (2.92)	0.0307 (0.11)
Tax	−0.142 (−0.45)	−0.853 (−1.85)
HP	−0.249^** (−3.19)
e.HP	0.640^*** (13.02)
IV HP		−0.0793 (−0.60)
ROT		−0.00443 (−0.48)
e.ROT		0.539^*** (24.11)
sigma_e
Constant	0.0729^*** (73.48)	0.101^*** (85.26)
Fixed Municipalities	Yes	Yes
Fixed-Year effects	Yes	Yes
AIC	−10701.2	−6317.1
Hausman	0.0000	0.0000
LR test Manski vs Kelejian-Prucha	0.0001	0.0018
LR test Manski vs Durbin	0.0000	0.0000
LR test Manski vs Durbin Error	0.0091	0.0001
Observations	4,930	4,060

	(1)	(2)
	HP	ROT
Main
IV ROT	0.665^*** (3.99)
IV HP		0.209 (0.73)
Unemployment	−0.0228^*** (−5.05)	0.00511 (0.50)
Rentals	0.0616^** (3.15)	−0.0338 (−1.30)
Density	0.510^*** (3.82)	−0.642^*** (−5.15)
Urban	−0.167^*** (−3.39)	−0.00621 (−0.07)
Population	0.292^** (2.71)
Income	0.113 (0.78)	0.735^*** (4.12)
Tax	1.131^*** (4.34)	−0.837^*** (−4.08)
W
IV ROT	−0.00323 (−0.60)
Unemployment	−0.00704 (−0.64)	0.00306 (0.18)
Rentals	−0.117^** (−2.75)	0.0319 (0.52)
Density	0.171 (0.58)	0.157 (0.40)
Urbanisation	−0.230 (−1.51)	0.235 (1.07)
Population	−0.256 (−0.81)	0.271 (0.64)
Income	0.452^** (2.92)	0.0307 (0.11)
Tax	−0.142 (−0.45)	−0.853 (−1.85)
HP	−0.249^** (−3.19)
e.HP	0.640^*** (13.02)
IV HP		−0.0793 (−0.60)
ROT		−0.00443 (−0.48)
e.ROT		0.539^*** (24.11)
sigma_e
Constant	0.0729^*** (73.48)	0.101^*** (85.26)
Fixed Municipalities	Yes	Yes
Fixed-Year effects	Yes	Yes
AIC	−10701.2	−6317.1
Hausman	0.0000	0.0000
LR test Manski vs Kelejian-Prucha	0.0001	0.0018
LR test Manski vs Durbin	0.0000	0.0000
LR test Manski vs Durbin Error	0.0091	0.0001
Observations	4,930	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. Spatial weight matrix (W): contiguity. The statistics for t are in parentheses. STATA 17 has been used: commands: spxtregress, spmatrix, lrtest, and hausman

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

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