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Urban redevelopment and residential location choice: Evidence from a major earthquake in Japan

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  • Hangtian Xu
  • Si Wang

Abstract

We examine residential location choice behavior in a metropolitan area of Japan that experienced seismic damage. We find that the internal structure of the affected area was reshaped, although, in the long term, its total population size was robust to this temporary shock. Before the earthquake, the population was evolving toward a state of equilibrium with dense locations in the core facing redevelopment barriers and, therefore, stagnation. In contrast, the periphery was becoming increasingly appealing and thus growing. Seismic damage allowed for redevelopment at higher density, making the adjusted equilibrium with dense locations grow again. In summary, the initially expanding periphery stagnated as an unintended consequence of urban redevelopment.

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  • Hangtian Xu & Si Wang, 2019. "Urban redevelopment and residential location choice: Evidence from a major earthquake in Japan," Journal of Regional Science, Wiley Blackwell, vol. 59(5), pages 850-882, November.
    • Handle: RePEc:bla:jregsc:v:59:y:2019:i:5:p:850-882
    DOI: 10.1111/jors.12424
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    Cited by:

    1. Gan Jin & Günther G. Schulze, 2024. "Historical Legacies and Urbanization: Evidence from Chinese Concessions," Discussion Paper Series 47 JEL Classification: N9, Department of International Economic Policy, University of Freiburg, revised Feb 2024.
    2. Xu, Hangtian & Zhou, Yiming, 2019. "Public housing provision and housing vacancies in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 53(C), pages 1-1.
    3. Lin, Jeffrey & Rauch, Ferdinand, 2022. "What future for history dependence in spatial economics?," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    4. Dottori, Davide, 2024. "The effect of the earthquake in Central Italy on the depopulation of the affected territories," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    5. Cuong Nguyen & Ilan Noy & Dag Einar Sommervoll & Fang Yao, 2020. "Redrawing of a Housing Market: Insurance Payouts and Housing Market Recovery in the Wake of the Christchurch Earthquake of 2011," CESifo Working Paper Series 8560, CESifo.
    6. Cuong Nguyen & Ilan Noy & Dag Einar Sommervoll & Fang Yao, 2023. "Settling insurance claims with cash or repair and housing market recovery after an earthquake," Economics of Disasters and Climate Change, Springer, vol. 7(1), pages 117-134, March.
    7. Xu, Hangtian, 2019. "The burst of the real estate bubble as a promoter of gentrification in Tokyo and Osaka, 1980–2017," MPRA Paper 96803, University Library of Munich, Germany.
    8. Giuliano Masiero & Michael Santarossa, 2020. "Earthquakes, grants, and public expenditure: How municipalities respond to natural disasters," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 481-516, June.
    9. Yuming Fu & Song Shi, 2022. "Barriers to urban spatial development: Evidence from the 2010–2011 Christchurch earthquakes," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 218-245, January.

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