In this study, households' decisions on reconstruction of damaged houses were modeled, using questionnaire data in Japan. Characteristics of households' decisions were investigated using parameter estimation results. The effects of subsidizing policy were evaluated as follows. First, subsidy for rebuilding may be effective for the households whose houses were heavily damaged. Second, there is a possibility that subsidy accelerated rebuilding of houses by the households having children. Third, subsidy for rebuilding may not be effective for elderly people's households and households in depopulated areas.
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