RT Journal Article
SR Electronic
T1 Rents and Land Prices in Japan: A Panel Cointegration Approach
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 587
OP 597
DO 10.3368/le.85.4.587
VO 85
IS 4
A1 Ana I. Sanjuán
A1 Philip J. Dawson
A1 Lionel J. Hubbard
A1 Sawako Shigeto
YR 2009
UL http://le.uwpress.org/content/85/4/587.abstract
AB 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)