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Dynamics of a Protected Housing Market: The Case of Switzerland

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  • Karol Jan Borowiecki

Abstract

This study posits that there may be a strong relationship between the high degree of protectionism of the Swiss housing market and its stability. The article provides an overview of the Swiss housing policies that, it is argued, are highly conservative in the context of an international comparison. The stability of the Swiss housing economy is empirically tested. Based on the time-period from 1990 to 2009, in which two substantial crises occurred, house prices and construction activity are modelled. The emerging results, which are admittedly based on a very short time-series, are nonetheless consistent with previous theoretical and empirical research. Furthermore, the findings indicate that the Swiss housing economy operates in accordance with fundamentals. Based on a tentative approach that measures the occurrence of the crisis with annual indicator variables, no effects of the crises on the Swiss housing market can be detected.

Suggested Citation

  • Karol Jan Borowiecki, 2012. "Dynamics of a Protected Housing Market: The Case of Switzerland," Urban Studies, Urban Studies Journal Limited, vol. 49(14), pages 3195-3210, November.
  • Handle: RePEc:sae:urbstu:v:49:y:2012:i:14:p:3195-3210
    DOI: 10.1177/0042098011435278
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    Cited by:

    1. Fischer, Andreas & Zachmann, Lucca, 2020. "The effect of self-financed property buyers on local house prices," CEPR Discussion Papers 14632, C.E.P.R. Discussion Papers.
    2. Kathrin Degen & Andreas Fischer, 2017. "Immigration and Swiss House Prices," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 153(I), pages 15-36, March.
    3. Kathrin Degen & Andreas M. Fischer, 2017. "Immigration and Swiss House Prices," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 153(1), pages 15-36, January.

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    More about this item

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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