Population, Income, and Farmland Pricing in an Open Economy
Huijian Dong () and
Xiaomin Guo ()
Additional contact information
Huijian Dong: Kate Tiedemann School of Business and Finance, University of South Florida, 140 7th Ave S, St. Petersburg, FL 33701, USA
Xiaomin Guo: Kate Tiedemann School of Business and Finance, University of South Florida, 140 7th Ave S, St. Petersburg, FL 33701, USA
International Journal of Financial Studies, 2020, vol. 8, issue 4, 1-18
Farmland valuation models usually incorporate local purchasing power as one of the pricing factors. A plausible rationale is that a larger population and higher income per capita imply increasing demand for agricultural products and farmland. In this paper, we study the relationship between the agricultural land prices, the regional population, and income per capita in an open economy setting in nominal and real variable terms using data from 1929 to 2018 at the state level. We show that in most areas of the United States, agricultural land prices are less affected by the state population or personal income. The valuation of agricultural land should not factor in the local purchasing power factors, with a few exceptions.
Keywords: agricultural product; land valuation; real estate; purchasing power; local output; trade (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:8:y:2020:i:4:p:67-:d:436283
Access Statistics for this article
International Journal of Financial Studies is currently edited by Prof. Dr. Nicholas Apergis
More articles in International Journal of Financial Studies from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().