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Do lifelong experiences of land prices affect homeownership in Japan?

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  • Tokuoka, Kiichi

Abstract

Using Japanese household data, this study tests the hypothesis that experiencing growth in land prices over a lifetime influences homeownership. To test this experience hypothesis, this study calculates the lifelong weighted average of real land price growth while estimating a parameter that determines the shape of the weight function. The study then corroborates the results using US data. The results — using both Japanese and US data — support the hypothesis and are consistent with the belief channel; that is, experiencing price growth affects homeownership by influencing expectations of returns from housing investment.

Suggested Citation

  • Tokuoka, Kiichi, 2025. "Do lifelong experiences of land prices affect homeownership in Japan?," Japan and the World Economy, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:japwor:v:75:y:2025:i:c:s0922142525000246
    DOI: 10.1016/j.japwor.2025.101320
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    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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