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Scaling behavior in land markets

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  • Kaizoji, Taisei

Abstract

In this paper, we present an analysis of power law statistics on land markets. There have been no other studies that have analyzed power law statistics on land markets up to now. We analyzed a database of the assessed value of land, which is officially monitored and made available to the public by the Ministry of Land, Infrastructure, and Transport, Government of Japan (the data on the assessed value of land for this paper is available on the Ministry of Land, Infrastructure and Transport Government of Japan's World-Wide Web site). This is the largest database of Japan's land prices, and consists of approximately 30,000 points for each year of a 6-year period (1995–2000). By analyzing the data on the assessed value of land, we were able to determine the power law distributions of the land prices and of the relative prices of the land. The data fit to a very good degree the approximation of power law distributions. We also found that the price fluctuations were amplified with the level of the price. These results hold for the data for each of the six annual intervals. Our empirical findings present the conditions that any empirically accurate theories of land market must satisfy.

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  • Kaizoji, Taisei, 2003. "Scaling behavior in land markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 326(1), pages 256-264.
    • Handle: RePEc:eee:phsmap:v:326:y:2003:i:1:p:256-264
    DOI: 10.1016/S0378-4371(03)00145-6
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    Cited by:

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    2. Raffaello Morales & T. Di Matteo & Ruggero Gramatica & Tomaso Aste, 2011. "Dynamical Hurst exponent as a tool to monitor unstable periods in financial time series," Papers 1109.0465, arXiv.org.
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    4. Ioannis P. Antoniades & Giuseppe Brandi & L. G. Magafas & T. Di Matteo, 2020. "The use of scaling properties to detect relevant changes in financial time series: a new visual warning tool," Papers 2010.08890, arXiv.org, revised Dec 2020.
    5. Igor Fedotenkov, 2020. "A Review of More than One Hundred Pareto-Tail Index Estimators," Statistica, Department of Statistics, University of Bologna, vol. 80(3), pages 245-299.
    6. Claes Andersson & Koen Frenken & Alexander Hellervik, 2006. "A Complex Network Approach to Urban Growth," Environment and Planning A, , vol. 38(10), pages 1941-1964, October.
    7. Morales, Raffaello & Di Matteo, T. & Gramatica, Ruggero & Aste, Tomaso, 2012. "Dynamical generalized Hurst exponent as a tool to monitor unstable periods in financial time series," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(11), pages 3180-3189.
    8. D'Acci, Luca S., 2023. "Is housing price distribution across cities, scale invariant? Fractal distribution of settlements' house prices as signature of self-organized complexity," Chaos, Solitons & Fractals, Elsevier, vol. 174(C).
    9. Antoniades, I.P. & Brandi, Giuseppe & Magafas, L. & Di Matteo, T., 2021. "The use of scaling properties to detect relevant changes in financial time series: A new visual warning tool," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 565(C).

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