Measuring liquidity in agricultural land markets

Marlene Kionka, Martin Odening, Jana Plogmann and Matthias Ritter

No 25 (2020), FORLand Working Papers from Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation"

Abstract: This paper contributes to the sparse empirical literature on measuring liquidity in agricultural land markets. Using data from Lower Saxony (Germany), we inspect the spatial and temporal variability of various liquidity indicators. We apply a panel vector autoregression (VAR) and Granger causality tests to examine the relationship between liquidity and prices and to identify further determinants of land market liquidity, such as supply shocks and clientele effects. Unlike in housing markets, no positive relationship between prices and market liquidity exists. We conclude that in agricultural land markets, a high demand from expanding farms absorbs supply shocks regardless of prevailing prices.

Keywords: Agricultural land markets; liquidity indicators; panel vector autoregressive model; Granger causality (search for similar items in EconPapers)
JEL-codes: C32 C33 Q13 Q24 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-agr
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Related works:
Journal Article: Measuring liquidity in agricultural land markets (2021)
Working Paper: Measuring Liquidity in Agricultural Land Markets (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:forlwp:252020

DOI: 10.18452/22244

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