English

Dynamical change of Pareto index in Japanese land prices

Physics and Society 2008-12-02 v1 General Finance

Abstract

We investigate the dynamical behavior in the large scale region of non-equilibrium systems, by employing data on the assessed value of land in 1983 -- 2006 Japan. In the system we find the detailed quasi-balance, which has the symmetry: x_1 -> a {x_2}^{\theta} (x_1 and x_2 are two successive land prices). By using the detailed quasi-balance and Gibrat's law, we derive Pareto's law with varying Pareto index annually. The parameter \theta corresponds with the ratio of Pareto indices (\mu_1 + 1)/(\mu_2 + 1), and the relation is confirmed in the empirical data nicely.

Keywords

Cite

@article{arxiv.physics/0607131,
  title  = {Dynamical change of Pareto index in Japanese land prices},
  author = {Atushi Ishikawa},
  journal= {arXiv preprint arXiv:physics/0607131},
  year   = {2008}
}

Comments

11 pages, 11 figures, presented in Applications of Physics in Financial Analysis (APFA5), Torino, Italy, June 29 to July 1, 2006