Farmland Values and Bidder Behavior in First-Price Land Auctions

Carsten Croonenbroeck, Martin Odening and Silke Hüttel

No 275486, FORLand Project Publications from University of Natural Resources and Applied Life Sciences, Vienna, Department of Economics and Social Sciences

Abstract: Within this paper, we aim to investigate asymmetries among bidders in land auctions that may entail non-competitive prices. Using representative data for Eastern Germany including winning bids, bidder characteristics, and land amenities, we pursue a structural approach to derive distributions of latent land values for different bidder groups. By applying nonparametric techniques, we cannot find evidence for asymmetric bidder structures while differentiating between legal entities, tenancy status, and nationality of bidders. Our findings challenge the hypothesis that land privatization via auctions discriminates against certain buyer groups—an argument that is often used to justify stricter regulation of agricultural land markets.

Keywords: Agricultural and Food Policy; Agricultural Finance; Land Economics/Use (search for similar items in EconPapers)
Pages: 29
Date: 2018-02-28
New Economics Papers: this item is included in nep-agr, nep-des and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://ageconsearch.umn.edu/record/275486/files/FORLand-2018-02.pdf (application/pdf)

Related works:
Journal Article: Farmland values and bidder behaviour in first-price land auctions (2020)
Working Paper: Farmland values and bidder behavior in first-price land auctions (2018)
Working Paper: Farmland values and bidder behavior in first-price land auctions (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:bokufo:275486

DOI: 10.22004/ag.econ.275486

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