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Rents, Interest Rates and Real Agricultural Land Prices: An Application to a Greek Province

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Author Info
Daouli, Joan
Demoussis, Michael P

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Abstract

The objective of this paper is to identify and investigate empirically the major factors that affected real farmland prices in Greece for the period 1967 to 1988. The paper treats farmland not only as a factor of production but also as a vehicle for storing and preserving wealth. In this respect, an investigation of the behavior of the real interest rate is undertaken and its impact on farmland prices is examined through a dynamic econometric model. The empirical work investigates agricultural land prices in the Etoloacarnania prefecture where one of the major plains of Greece is situated. The results of the statistical estimation suggest that both rental income and real interest rates have a significant effect on farmland prices. Copyright 1992 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 19 (1992)
Issue (Month): 4 ()
Pages: 417-25
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Handle: RePEc:oup:erevae:v:19:y:1992:i:4:p:417-25

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  1. Joost Buurman, 2001. "A spatial exploratory model of rural land prices," ERSA conference papers ersa01p15, European Regional Science Association. [Downloadable!]
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This page was last updated on 2009-11-28.


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