The common agricultural policy of the EU and agricultural land prices - a spatial econometric approach for Bavaria

Paul Feichtinger and Klaus Salhofer

No 182751, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: We empirically analyze 7,300 agricultural land sales transactions in 2001 and 2007 to identify factors influencing agricultural land sales prices in Bavaria. To account for the importance of space in land markets, we utilize a general spatial model including a spatial lag and a spatial error. Our findings confirm a significant capitalization of government payments into land prices. A reduction of payments by 50 €/ha would decrease land sales prices by 849 €/ha (280 €/ha) in 2007 (2001). Hence, the 2003 Fischler Reform has increased the capitalization effect. Moreover, we find a strong influence of land productivity, urban pressure and the regional land market structure on agricultural land sales prices.

Keywords: Agricultural and Food Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 13
Date: 2014-08
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae14:182751

DOI: 10.22004/ag.econ.182751

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