Analyzing Relocation-Promotion Policy with Subsidy using Stated Preference Survey

Abstract

Relocation-promotion policy with subsidy can be a realistic option to make future Japanese cities compact, and we analyze the policy using stated preference survey (N=94) in Kumamoto, Japan. We found that respondent will agree on the provision of increased subsidy if we explain why compact city is important. Then we built a binary logit model of relocation behavior incorporating subsidy as policy variable. We also found no statistical significant difference between price elasticity of housing rent and that of subsidy.