Residential Mobility Decisions in Japan: Effects of Housing Equity Constraints and Income Shocks under the Recourse Loan System



This paper draws on six waves of Japanese household longitudinal data (Keio Household Panel Survey, KHPS) and estimates a conditional fixed effects logit model to investigate the effects of housing equity constraints and income shocks on own-to-own residential moves in Japan. By looking at contemporaneous extended Loan-to-Value (ELTV) and extended Debt-to-Income (EDTI) ratios under the recourse loan system, we examine whether housing equity constraints and negative income shocks have any impact on own-to-own residential moves. Taking account of the specific nature of the recourse loan system in Japan, we further investigate whether these effects are different between positive and negative equity households. The estimation results show that housing equity constraints and negative income shocks significantly deter own-to-own residential moves for positive equity households.


Residential mobility Housing equity constraint Conditional fixed effects logit model Loan-to-value ratio Debt-to-income ratio Negative equity Japan Recourse loan 

JEL Classification

R21 C51 G21 


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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Faculty of EconomicsKeio UniversityTokyoJapan
  2. 2.Department of EconomicsKanazawa Seiryo UniversityIshikawaJapan
  3. 3.Faculty of Marine TechnologyTokyo University of Marine Science and TechnologyTokyoJapan

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