Rents and land prices in Japan: A panel cointegration approach

The Japanese farmland market is strongly regulated, although partial deregulation and decentralization are evident. This paper examines the relationship between farmland rents and prices in Japan using recent panel cointegration methods, which admit structural breaks. Results show the presence of a...

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Bibliographic Details
Published in:Land economics 2009-11, Vol.85 (4), p.587-597
Main Authors: Sanjuan, Ana I, Dawson, Philip J, Hubbard, Lionel J, Shigeto, Sawako
Format: Article
Language:English
Subjects:
Agricultural economics
Agricultural land
Causality
Cointegration analysis
Decentralization
Deregulation
Economic models
Economic rent
Efficient markets
Environment
Farming
Farmlands
Farms
Japan
Land economics
Land prices
Land use
land values
leasing
Market prices
mathematical models
Prices
Real estate market
Rent
Rents
Studies
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Summary:The Japanese farmland market is strongly regulated, although partial deregulation and decentralization are evident. This paper examines the relationship between farmland rents and prices in Japan using recent panel cointegration methods, which admit structural breaks. Results show the presence of a cointegrating relationship with significant breaks that increased the rent/price ratio by 9% in 1967 and by 15% in 1980; prices cause rents, which supports an institutional rent-formation hypothesis; and the farmland market is inefficient. (JEL C51, Q15)
ISSN:0023-7639
1543-8325
DOI:10.3368/le.85.4.587