The team from Sweden’s Lund University has won the ‘world championship’ in Econometrics held last week on 8 and 9 April. The competition was organised by the VSAE study association for EB students of actuarial science, econometrics and operational research. The teams were presented with a case involving Airbnb and its possible impact on house prices in Amsterdam.
The winning team concluded that Airbnb had a price-increasing effect on house prices in Amsterdam. Every 100 listings within 250 metres of a house drove the price of homes in the neighbourhood up by 5-12%. Setting high asking prices played an important role in this effect. The team also concluded that the presence of Airbnb houses did not play a demonstrable role in how long a house remained for sale.
The jury praised the Swedish team’s report for its clear theoretical context and their research into the different effects of how Airbnb has an impact on house prices.