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Earthquakes and Housing Rental Prices in Urban Indonesia: A Hedonic Price Analysis

Author

Listed:
  • Aloysius Gunadi Brata

    (Atma Jaya Yogyakarta University, Indonesia)

  • Yenny Patnasari

    (Atma Jaya Yogyakarta University, Indonesia)

Abstract

This paper examines the influence of earthquakes on housing rental prices in the urban areas of Indonesia. We employ the household and community data from the Indonesian Family Life Surveys (IFLS) 4 and 5 and estimate a hedonic price model of housing rental prices. We also add a set of variables representing housing attributes and a set of variables related to the community attributes. We find that current earthquakes have had a statistically significant impact on the housing rental prices, confirming the shortterm impact of the earthquakes. There is no evidence that earthquakes have long-term impacts on housing rental prices. We find that earthquakes have a short-term effect on the housing rental prices for self-owned houses only. This finding confirms that different statuses of houses respond differently to earthquake disasters.

Suggested Citation

  • Aloysius Gunadi Brata & Yenny Patnasari, 2024. "Earthquakes and Housing Rental Prices in Urban Indonesia: A Hedonic Price Analysis," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(2), pages 229-240, May.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:2b:p:229-240
    DOI: https://doi.org/10.59091/2460-9196.1746
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    References listed on IDEAS

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    1. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    2. Somik V. Lall & Uwe Deichmann, 2012. "Density and Disasters: Economics of Urban Hazard Risk," The World Bank Research Observer, World Bank, vol. 27(1), pages 74-105, February.
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