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Dynamical change of Pareto index in Japanese land prices

Atushi Ishikawa

physics.soc-pharXiv:physics/0607131

Abstract

We investigate the dynamical behavior in the large scale region of non-equilibrium systems, by employing data on the assessed value of land in 1983 -- 2006 Japan. In the system we find the detailed quasi-balance, which has the symmetry: x1 -> a x2θ (x1 and x2 are two successive land prices). By using the detailed quasi-balance and Gibrat's law, we derive Pareto's law with varying Pareto index annually. The parameter θcorresponds with the ratio of Pareto indices (μ1 + 1)/(μ2 + 1), and the relation is confirmed in the empirical data nicely.

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