Towards a Theory of Japanese Land Use and Land Price

Abstract

Since the second world war Japan has made tremendous economic progress, which has caused a great change in it's regional structure. In this paper the author have made a theoretical approach to land use and land price through analysis of the regional structure of Japan.This analysis attempts to a) to explain the change of land use in connection with land price. b) to explain the influence of traffic facilities and stock and flow of informations on change of land use.First the made a potential analysis by region. He calculated the potential power of land which might change the present pattern of land use or might be changed by another. By the potential power of land is meant net profit from the use of the land.For banks I calculated gross profit on deposits. Three percentt of deposits are considered to be gross profit by the difference in the rate of interest between deposit and rent. Real land price of a bank area is calculated on net profit per m2 divided by rate of interest.In case of department store and retail shop He calculated gross profit on sum of sales. 20% of them are considered gross profit. 2% of sales are considered net profit. Real land price of retail shop deparetment store areas are counted in the same way.From the comparison between the real land price and the nominal one, the following can be said.First He obtained value added data of the factory, then calculated net profit after cost analysis. Real land price can be obtained from net profit per m2 divided by interest rate.From the land price curve of manufacturing area the following can be seen.