• Chigusa Okamoto Assistant Professor, Faculty of Economics, Chuo University

• Daiji Kawaguchi Professor, Graduate School of Economics, The University of Tokyo

We quantify the externality of redevelopment program of urban shopping center on its neighborhood, exploiting the urban redevelopment program in the central shopping district in Tokyo as a natural experiment. The demolish of 77-years old apartment unit and a construction of shopping complex generated immediate hike in the neighborhood land price and long-term increase of the aggregate sales of neighborhood clothing stores. The redevelopment program did not change the land use of neighborhood because of the tight regulation of land use; the resulting inelastic supply of land induced substantial land price hike.

Chigusa Okamoto is an Assistant Professor at Faculty of Economics, Chuo University. She is also a project researcher at Center for Research and Education in Program Evaluation (CREPE), the University of Tokyo. She took her Ph.D. in Economics from the University of Tokyo. Her main research areas are Urban Economics, Spatial Economics and Applied Microeconometrics.