Residential Mobility Decisions in Japan: Effects of Housing Equity Constraints and Income Shocks under the Recourse Loan System

Miki Seko, Kazuto Sumita, Michio Naoi

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper draws on six waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) and estimates a conditional fixed effects logit model to investigate the effects of housing equity constraints and income shocks on own-to-own residential moves in Japan. By looking at contemporaneous extended Loan-to-Value (ELTV) and extended Debt-to-Income (EDTI) ratios under the recourse loan system, we examine whether housing equity constraints and negative income shocks have any impact on own-to-own residential moves. Taking account of the specific nature of the recourse loan system in Japan, we further investigate whether these effects are different between positive and negative equity households. The estimation results show that housing equity constraints and negative income shocks significantly deter own-to-own residential moves for positive equity households.

Original languageEnglish
Pages (from-to)63-87
Number of pages25
JournalJournal of Real Estate Finance and Economics
Volume45
Issue number1
DOIs
Publication statusPublished - 2012 Jun
Externally publishedYes

Fingerprint

residential mobility
recourse
equity
loan
Japan
housing
income
debt
indebtedness
decision
effect
Residential mobility
Loans
Equity
Income shocks
household
Household
Values

Keywords

  • Conditional fixed effects logit model
  • Debt-to-income ratio
  • Housing equity constraint
  • Japan
  • Loan-to-value ratio
  • Negative equity
  • Recourse loan
  • Residential mobility

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics
  • Urban Studies

Cite this

@article{7f51d9c1495c4809b2de6f40a4294244,
title = "Residential Mobility Decisions in Japan: Effects of Housing Equity Constraints and Income Shocks under the Recourse Loan System",
abstract = "This paper draws on six waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) and estimates a conditional fixed effects logit model to investigate the effects of housing equity constraints and income shocks on own-to-own residential moves in Japan. By looking at contemporaneous extended Loan-to-Value (ELTV) and extended Debt-to-Income (EDTI) ratios under the recourse loan system, we examine whether housing equity constraints and negative income shocks have any impact on own-to-own residential moves. Taking account of the specific nature of the recourse loan system in Japan, we further investigate whether these effects are different between positive and negative equity households. The estimation results show that housing equity constraints and negative income shocks significantly deter own-to-own residential moves for positive equity households.",
keywords = "Conditional fixed effects logit model, Debt-to-income ratio, Housing equity constraint, Japan, Loan-to-value ratio, Negative equity, Recourse loan, Residential mobility",
author = "Miki Seko and Kazuto Sumita and Michio Naoi",
year = "2012",
month = "6",
doi = "10.1007/s11146-011-9322-3",
language = "English",
volume = "45",
pages = "63--87",
journal = "Journal of Real Estate Finance and Economics",
issn = "0895-5638",
publisher = "Springer Netherlands",
number = "1",

}

TY - JOUR

T1 - Residential Mobility Decisions in Japan

T2 - Effects of Housing Equity Constraints and Income Shocks under the Recourse Loan System

AU - Seko, Miki

AU - Sumita, Kazuto

AU - Naoi, Michio

PY - 2012/6

Y1 - 2012/6

N2 - This paper draws on six waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) and estimates a conditional fixed effects logit model to investigate the effects of housing equity constraints and income shocks on own-to-own residential moves in Japan. By looking at contemporaneous extended Loan-to-Value (ELTV) and extended Debt-to-Income (EDTI) ratios under the recourse loan system, we examine whether housing equity constraints and negative income shocks have any impact on own-to-own residential moves. Taking account of the specific nature of the recourse loan system in Japan, we further investigate whether these effects are different between positive and negative equity households. The estimation results show that housing equity constraints and negative income shocks significantly deter own-to-own residential moves for positive equity households.

AB - This paper draws on six waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) and estimates a conditional fixed effects logit model to investigate the effects of housing equity constraints and income shocks on own-to-own residential moves in Japan. By looking at contemporaneous extended Loan-to-Value (ELTV) and extended Debt-to-Income (EDTI) ratios under the recourse loan system, we examine whether housing equity constraints and negative income shocks have any impact on own-to-own residential moves. Taking account of the specific nature of the recourse loan system in Japan, we further investigate whether these effects are different between positive and negative equity households. The estimation results show that housing equity constraints and negative income shocks significantly deter own-to-own residential moves for positive equity households.

KW - Conditional fixed effects logit model

KW - Debt-to-income ratio

KW - Housing equity constraint

KW - Japan

KW - Loan-to-value ratio

KW - Negative equity

KW - Recourse loan

KW - Residential mobility

UR - http://www.scopus.com/inward/record.url?scp=84862628707&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84862628707&partnerID=8YFLogxK

U2 - 10.1007/s11146-011-9322-3

DO - 10.1007/s11146-011-9322-3

M3 - Article

AN - SCOPUS:84862628707

VL - 45

SP - 63

EP - 87

JO - Journal of Real Estate Finance and Economics

JF - Journal of Real Estate Finance and Economics

SN - 0895-5638

IS - 1

ER -