Abstract
This study formulates a model for analyzing the structure where a person's relationship with local culture or assets creates an identity of local residents. First, this study formulates a model, interpreting a person's identity formation as her/his choice of a category among three categories: “Active Residents”, “Emigrants”, and “the Apathetic”, which are respectively given different utility function. Then, the study derives an optimal solution according to the degree of each person's relationship with local assets and the degree of her/his specialized skill for work. In addition, the study derives the distribution of each identity in the community. Furthermore, the study extends the model to deal with some cases, for example, the case of community relocation after a catastrophic disaster. Finally, the study statistically verifies the effect of a person's relationship with local assets on her/his identity formation, using questionnaire survey data from residents in Shin-Onsen Town, Hyogo.