The Impact of Competition, Subsidies, and Taxes on Production and Construction Cost: The Case of the Swedish Housing Construction Market
Table 6
Production cost versus construction cost.
Model 6 Construction cost
Model 7 Construction cost
Model 8 Construction cost
Model 9 Construction cost
Production cost
Sub
0.3025 (7.57)
0.1298 (3.19)
0.1786 (3.90)
0.1281 (5.05)
0.1041 (4.05)
VAT
−0.2582
−0.1325
−0.2323
−0.1312
−0.1136
(−11.32)
(−6.54)
(−6.70)
(−7.30)
(−6.25)
Change stock
29.9166
13.1731
32.7823
14.5347
16.2088
(6.10)
(3.16)
(4.85)
(4.97)
(5.38)
Inccap
0.3607
0.1981
0.8994
0.1940
0.3057
(4.44)
(3.61)
(7.13)
(3.20)
(4.89)
T rate
0.2606
0.1102
0.1983
0.1040
0.0672
(3.84)
(1.88)
(3.10)
(2.31)
(1.46)
Lerner
0.4610
0.2092
0.3342
0.2370
0.1885
(3.58)
(1.98)
(2.03)
(2.93)
(2.29)
Time trend
0.0242
0.0103
0.0109
0.0097
0.0059
(11.45)
(4.89)
(3.66)
(6.16)
(3.78)
AR (1)
—
0.5440
—
0.5779
0.6005
(12.82)
(27.15)
(27.75)
Constant
0.4502
−0.1106
−4.0122
—
−1.2514
(0.48)
(−0.18)
(−2.86)
(−1.8)
R square
0.9544
0.9756
0.9165
0.9775
0.9756
Method
IV
IV
IV-Prais
Three-stage
Fixed regional effect
Yes
Yes
Yes
Yes
All variables are in natural logarithm form. values are presented within brackets. Instruments used: unemployment and demographic variables. Dependent variable: total construction cost and production cost excl. VAT.
