A Study of Japanese Condominium Acts Based on Regulatory Fixed Cost Theory by Time Series Analysis

Abstract

Regulatory supply theory model based on fixed cost is a new approach in line with the public interest theory and special interest theory. The theory is not thorough enough to be used extensively, due to the continuing aggregation problem with regulatory stratification. This study was carried out to extend the model and to measure population elasticity in terms of condominium acts in Japan by time series data. In conclusion, the population effect was proven, and we gained many meaningful findings. First, the extended model shows criteria of aggregation and simplifies the choice of affected population indexes. Second, the study shows the recent regulatory inflation is due to an increase of older condominium stock. Third, the study predicts that shifts from flow to stock in affected population indexes will inevitably require regulatory reforms.