The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices

Paul Feichtinger and Klaus Salhofer

No DP-58-2015, Discussion Papers from University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development

Abstract: Based on 7,300 agricultural land sales transactions we estimate the effect of the 2003 reform of the Common Agricultural Policy on land prices. As opposed to the main body of the literature on agricultural land values, we do not start from a demand-oriented net present value approach or hedonic prizing method, but derive our reduced form pricing equation from a spatial land sales market model. Our empirical model accounts for spatial dependence and endogeneity of explanatory variables. A reduction of payments by 50 €/ha would decrease land sales prices by 445 €/ha before and by 984 €/ha after the reform.

Keywords: agricultural land prices; Common Agricultural Policy; spatial econometrics (search for similar items in EconPapers)
JEL-codes: C21 Q15 Q18 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:inwedp:dp582015

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