Abstract
In this paper, we estimate Tokyo's land price for the last 23 years by universal kriging, a geostatistical method which provides the best linear unbiased predict for spatial data.Spatial correlation in disturbances is estimated through a semivariogram model and employed for spatial interpolation of official land prices in Tokyo. Our calculations show that spatial correlation in disturbances is crucial in estimating land prices and that kriging is one of the most appropriate approaches for this goal.
