Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The relationship between the stock and housing market in Sweden: Under different market conditions
University West, School of Business, Economics and IT, Divison of Law, Economics, Statistics and Politics.
University West, School of Business, Economics and IT, Divison of Law, Economics, Statistics and Politics.
2020 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The two largest assets on the balance sheet in the Swedish households are stocks and houses. The country's wealth and general economy are greatly affected by changes in the two markets. This paper investigates the relationship between the stock- and housing market in Sweden under the time period 1987 to 2019. To investigate the correlation, a bivariate correlation matrix was used and to investigate the causality of the two assets, the Granger causality test based on a vector autoregressive model (VAR) was applied. The causality test is performed both with and without control variables like GDP and interest rate. We will be dived the full time series into different subsamples, where focus is on two periods that includes a recession and two periods that include an economic boom. It is important to analyze how causality is during different business cycles to get a better understanding about the causality between the two markets. The conclusion that there is a large and positive relationship between the two assets could be drawn after the analysis of the bivariate correlation matrix. Overall, the causality test shows that there is unidirectional causality from the stock market to the housing market during an economic boom but not during a recession.

Place, publisher, year, edition, pages
2020. , p. 55
Keywords [en]
OMX-Stockholm, Real estate Swedish price index, bivariate regression analysis, Durbin Watson test, Dickey fuller test, Engle granger test, Granger causality, bivariate correlation analysis, VAR-model
National Category
Economics
Identifiers
URN: urn:nbn:se:hv:diva-15552Local ID: EXC513OAI: oai:DiVA.org:hv-15552DiVA, id: diva2:1455283
Subject / course
Nationalekonomi
Educational program
Mäklarekonomprogrammet, fastighet och finans
Supervisors
Examiners
Available from: 2020-07-24 Created: 2020-07-23 Last updated: 2020-07-24Bibliographically approved

Open Access in DiVA

No full text in DiVA

By organisation
Divison of Law, Economics, Statistics and Politics
Economics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 243 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf