  In this paper we present an analysis of power law statistics on land markets.
There have been no other studies that have analyzed power law statistics on
land markets up to now. We analyzed a database of the assessed value of land,
which is officially monitored and made available to the public by the Ministry
of Land, Infrastructure, and Transport Government of Japan. This is the largest
database of Japan's land prices, and consists of approximately 30,000 points
for each year of a 6-year period (1995-2000). By analyzing the data on the
assessed value of land, we were able to determine the power law distributions
of the land prices and of the relative prices of the land. The data fits to a
very good degree the approximation of power law distributions. We also found
that the price fluctuations were amplified with the level of the price. These
results hold for the data for each of the 6 annual intervals. Our empirical
findings present the conditions that any empirically accurate theories of land
market must satisfy.
