Farmland values and bidder behavior in first-price land auctions

Carsten Croonenbroeck, Martin Odening and Silke Hüttel

No 02 (2018), FORLand Working Papers from Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation"

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: First-Price Sealed Bid Land Auctions; Structural Estimation; Buyer Heterogeneity (search for similar items in EconPapers)
JEL-codes: C57 D44 Q12 Q15 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/213056/1/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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:forlwp:022018

DOI: 10.18452/18966

Access Statistics for this paper

More papers in FORLand Working Papers from Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation" Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().