This paper examines the influence of consumer's risk perception on land prices in the disaster area of the Great Hanshin-Awaji Earthquake before and after the earthquake for 14 years based on the theoretical model of biased risk perception. Residential land prices data are merged with earthquake hazard measures andother characteristics of the land in order to estimate the hedonic price of the earthquake risk. Theestimates suggest that the hedonic price fell significantly after the event for several years implying consumer's biased risk perception by information of the earthquake risk.
