Spatio-temporal dynamics of the Japanese housing market
Housing has always been a large portion of the wealth of an agent in the economy. Despite that, we ?nd from reviewing previous work that the behavior of housing markets are seemingly poorly studied. Current methods such as hedonic models and the Alonso-Muth-Mills model either fail to account for...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2019
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/77110 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Housing has always been a large portion of the wealth of an agent in the economy. Despite that,
we ?nd from reviewing previous work that the behavior of housing markets are seemingly poorly
studied. Current methods such as hedonic models and the Alonso-Muth-Mills model either fail to
account for certain aspects of complex behavior, or have a lack of implementations to empirical
data. We thus study the housing market of 23 Special Wards in Tokyo, Japan and ?nd that it's
home price distribution exhibits a exponential equilibrium distribution with a power-law tail .
We then look at the temporal behavior of the housing price distributions, and ?nd the translation
and shifts in the power-law tail of the equilibrium distribution correspond to a "mini-bubble"
resulting from the introduction of Quantitative Easing monetary policy in the 2000s. The spatial
behavior of housing price distributions is also studied, and we ?nd that in general, power-law
exponents of the upper tail increase with distance from the central administrative and business
districts. Lastly, we present the spatial-temporal behavior of the housing prices in the form
of a heat map, and verify the e?ect of rising prices in the central region on the neighboring
municipalities. |
|---|