PRICE FORMATION IN AGRICULTURAL LAND MARKETS HOW DO DIFFERENT ACQUIRING PARTIES AND SELLERS MATTER?

Silke Huttel and Lutz Wildermann

No 187596, 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 from German Association of Agricultural Economists (GEWISOLA)

Abstract: This paper sets out to empirically analyse land price formation in Saxony-Anhalt with the aim to quantify the impact of sellers’ and acquiring parties’ structural identity on land prices. We use a hedonic price regression with a detailed data set covering the years 2009–2010. Besides productivity, neighbourhood and location attributes, we control for the major privatization agency as a seller, farmers as sellers or buyers and if tenants purchase the land. The model is estimated using spatial-econometric techniques where weight matrices are not only based on pure air distances, but also on travel time. We further take into account that price levels of adjacent parcels have an impact but only if they are observed prior to the respective price formation process. We find that prices realised by the major privatization agency are on average higher, and if the former tenant purchases the land, a lower price is realized.

Keywords: Demand and Price Analysis; Land Economics/Use (search for similar items in EconPapers)
Pages: 20
Date: 2014-09
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi14:187596

DOI: 10.22004/ag.econ.187596

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