The purpose of this study is to consider possibilities of building the regional system of management of living environment in order to resolve external diseconomies caused by increases of vacant lots. After the enactment of "The Law for Special Measures to Promote Dealing with Vacant Houses, etc.", the deterioration of living environment by abandoned lots remains as an imminent issue for shrinking suburbs. To examine possibilities of solutions with activities by neighborhood associations we

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... ucted research in "Yato" regions of Yokosuka, a city in the suburbs of Japanese metropolitan area, with a questionnaire survey and in-depth interviews to neighborhood associations of the regions. The survey and interviews reveal that some of the neighborhood associations hold social capitals which make possibility of the neighborhood associations to manage living environment in cooperation with owners of vacant lots.