Earthquake risk and housing prices in Japan: Evidence before and after massive earthquakes

Michio Naoi, Miki Seko, Kazuto Sumita

研究成果: Article査読

61 被引用数 (Scopus)

抄録

The hedonic pricing approach is used to examine whether homeowners and/or renters alter their subjective assessments of earthquake risks after massive earthquakes. Using nation-wide household panel data coupled with earthquake hazard information and records of observed earthquakes, we find that there are some modifications of individuals' assessments of earthquake risk in both cases. We have carefully taken into consideration the bias stemming from the use of objective risk variables as a proxy for individual risk assessments. Our results suggest that the price discount from locating within a quake-prone area is significantly larger soon after earthquake events than beforehand. We argue that the most likely interpretation for this result is that households tend to underestimate earthquake risk if there has not been a recent occurrence.

本文言語English
ページ(範囲)658-669
ページ数12
ジャーナルRegional Science and Urban Economics
39
6
DOI
出版ステータスPublished - 2009 11

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

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