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Decompositions of Spatially Varying Quantile Distribution Estimates: The Rise and Fall of Tokyo House Prices

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  • McMillen, Daniel
  • Shimizu, Chihiro

Abstract

We extend Machado-Mata’s (2005) approach for decomposing the differences in the distribution of a dependent variable across two samples to account for location when the models are estimated using conditional parametric procedures. We find that a substantial portion of the change in the distribution of condominium prices in Tokyo between the rapid rise in prices in 1986 – 1990 and the sharp decline in 1991 – 1995 is due to changes in the values of the explanatory variables. Changes in the locations of sales serve to shift the price distribution to the left because later sales were more likely to be farther from downtown Tokyo, where prices are lower.

Suggested Citation

  • McMillen, Daniel & Shimizu, Chihiro, 2017. "Decompositions of Spatially Varying Quantile Distribution Estimates: The Rise and Fall of Tokyo House Prices," HIT-REFINED Working Paper Series 74, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:remfce:74
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    References listed on IDEAS

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    12. Philip Kostov, 2009. "A Spatial Quantile Regression Hedonic Model of Agricultural Land Prices," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(1), pages 53-72.
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    1. Marusca De Castris & Daniele Di Gennaro, 2018. "Does agricultural subsidies foster Italian southern farms? A Spatial Quantile Regression Approach," Papers 1803.05659, arXiv.org.

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    More about this item

    Keywords

    Conditionally parametric; quantile regression; decomposition;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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