A Spatial Analysis of Agricultural Land Prices in Bavaria

Paul Feichtinger and Klaus Salhofer

No 160741, Working papers from Factor Markets, Centre for European Policy Studies

Abstract: This paper empirically analyses a dataset of more than 7,300 agricultural land sales transactions from 2001 and 2007 to identify the factors influencing agricultural land prices in Bavaria. We use a general spatial model, which combines a spatial lag and a spatial error model, and in addition account for endogeneity introduced by the spatially lagged dependent variable as well as other explanatory variables. Our findings confirm the strong influence of agricultural factors such as land productivity, of variables describing the regional land market structure, and of non-agricultural factors such as urban pressure on agricultural land prices. Moreover, the involvement of public authorities as a seller or buyer increases sales prices in Bavaria. We find a significant capitalisation of government support payments into agricultural land, where a decrease of direct payments by 1% would decrease land prices in 2007 and 2001 by 0.27% and 0.06%, respectively. In addition, we confirm strong spatial relationships in our dataset. Neglecting this leads to biased estimates, especially if aggregated data is used. We find that the price of a specific plot increases by 0.24% when sales prices in surrounding areas increase by 1%.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 20
Date: 2013-06-17
New Economics Papers: this item is included in nep-agr and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/160741/files/F ... 0Bavaria%20final.pdf (application/pdf)

Related works:
Working Paper: A Spatial Analysis of Agricultural Land Prices in Bavaria (2013)
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:ags:famawp:160741

DOI: 10.22004/ag.econ.160741

Access Statistics for this paper

More papers in Working papers from Factor Markets, Centre for European Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().