TY - JOUR
T1 - The effect of seismic hazard risk information on property prices
T2 - Evidence from a spatial regression discontinuity design
AU - Hidano, Noboru
AU - Hoshino, Tadao
AU - Sugiura, Ayako
N1 - Funding Information:
Hidano's work is supported by the JSPS Grant-in-Aid for Scientific Research B-25285071 . Hoshino acknowledges financial support from the JSPS Grant-in-Aid for Scientific Research PD-247943 . The authors would like to sincerely thank Daniel McMillen, Nicolai V. Kuminoff, and three anonymous referees for their constructive comments on the previous draft of the paper.
Publisher Copyright:
© 2015 Elsevier B.V.
Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.
PY - 2015/7/1
Y1 - 2015/7/1
N2 - In this paper, we utilize a spatial two-dimensional regression discontinuity (RD) design to study how Tokyo's property market evaluates information on seismic hazard risk. This approach is superior to the conventional one-dimensional RD design as it is able to account for spatially heterogeneous treatment effects and reduce small-sample biases. Our data consists of residential property transactions from the 23-ward area of Tokyo. Our results show that the unit prices of residential properties in low-risk zones were between 13,970-17,380 JPY higher than those in high-risk zones depending on the type of seismic hazard risk. In addition, we find that information on seismic hazard risk does not significantly affect the prices of newly constructed apartments, which are more resistant to earthquake damage than older residences.
AB - In this paper, we utilize a spatial two-dimensional regression discontinuity (RD) design to study how Tokyo's property market evaluates information on seismic hazard risk. This approach is superior to the conventional one-dimensional RD design as it is able to account for spatially heterogeneous treatment effects and reduce small-sample biases. Our data consists of residential property transactions from the 23-ward area of Tokyo. Our results show that the unit prices of residential properties in low-risk zones were between 13,970-17,380 JPY higher than those in high-risk zones depending on the type of seismic hazard risk. In addition, we find that information on seismic hazard risk does not significantly affect the prices of newly constructed apartments, which are more resistant to earthquake damage than older residences.
KW - Hedonic price
KW - Property market
KW - Quasi-experiment
KW - Regression discontinuity design
KW - Seismic hazard risk
UR - http://www.scopus.com/inward/record.url?scp=84936773226&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84936773226&partnerID=8YFLogxK
U2 - 10.1016/j.regsciurbeco.2015.05.005
DO - 10.1016/j.regsciurbeco.2015.05.005
M3 - Article
AN - SCOPUS:84936773226
SN - 0166-0462
VL - 53
SP - 113
EP - 122
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
ER -