The European Refugee Crisis and House Prices: Evidence from the United Kingdom

34 Pages Posted: 15 Nov 2016 Last revised: 13 Oct 2018

See all articles by William D. Lastrapes

William D. Lastrapes

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Thomas Lebesmuehlbacher

Xavier University

Date Written: May 9, 2018

Abstract

We estimate the effect of asylum seeker dispersal on house prices in the UK from 2004 to 2015. Using two empirical models of house transactions prices and asylum seeker inflows, we find that asylum seekers have small but non-trivial negative effects on housing prices, but only for lower priced and lower quality housing units. Our panel data regressions rely on variation across time and local areas, and account for potential endogeneity bias using instrumental variables, to identify these causal effects. Time series regressions, on the other hand, depend only on plausibly exogenous nationwide inflows of new asylum seekers.

Suggested Citation

Lastrapes, William D. and Lebesmuehlbacher, Thomas, The European Refugee Crisis and House Prices: Evidence from the United Kingdom (May 9, 2018). Available at SSRN: https://ssrn.com/abstract=2868420 or http://dx.doi.org/10.2139/ssrn.2868420

William D. Lastrapes

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )

Terry College of Business
Athens, GA 30602-6254
United States
706-542-3569 (Phone)
706-542-3376 (Fax)

Thomas Lebesmuehlbacher (Contact Author)

Xavier University ( email )

3800 Victory Parkway
Cincinnati, OH 45207
United States

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