Swiss Journal of Economics and Statistics

, Volume 146, Issue 3, pp 601–627 | Cite as

Estimating a stock-flow model for the Swiss housing market

  • Elizabeth Steiner
Open Access


This paper analyzes 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.


C32 E22 E32 R21 R31 


housing demand housing supply residential investment market disequilibrium housing prices 


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Copyright information

© Swiss Society of Economics and Statistics 2010

Authors and Affiliations

  1. 1.Swiss National Bank (SNB)ZurichSwitzerland

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