Optimal reserve prices for land auctions in Eastern Germany

Marlene Kionka, Oliver Musshoff, Matthias Ritter, Jan-Philip Rado Uhlemann and Martin Odening

Applied Economics Letters, 2024, vol. 31, issue 6, 574-578

Abstract: Privatization auctions are seen as culprit for rising prices in eastern Germany. This study aims to analyse whether privatization auctions could have earned even higher revenues by setting optimal reserve prices. For this purpose, a structural estimation approach is applied to determine reserve prices and to compare the resulting expected revenues with actual revenues. The data set includes land auctions in eastern Germany from 2005–2019. The empirical results illustrate that room for increasing revenues exists, but reserve prices would be required to be higher than actual land prices. A potential consequence of high reserve prices is the risk of delays in the privatization process.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2022.2140752 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:apeclt:v:31:y:2024:i:6:p:574-578

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2022.2140752

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().