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Modeling The United States Farmland Market: A Test Of The Rational Expectations Hypothesis

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  • Moore, Kevin C.

Abstract

A demand and supply model of the U.S. farmland market is constructed. Naive, adaptive, and rational expectations are used to represent market participants capital gains expectations. Rational expectations appear invalid in the land market while naive expectations provide good results. Use of supply and demand schedules also appears appropriate.

Suggested Citation

  • Moore, Kevin C., 1987. "Modeling The United States Farmland Market: A Test Of The Rational Expectations Hypothesis," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269943, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea87:269943
    DOI: 10.22004/ag.econ.269943
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    References listed on IDEAS

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    1. Cumby, Robert E. & Huizinga, John & Obstfeld, Maurice, 1983. "Two-step two-stage least squares estimation in models with rational expectations," Journal of Econometrics, Elsevier, vol. 21(3), pages 333-355, April.
    2. Robert W. Herdt & Willard W. Cochrane, 1966. "Farm Land Prices and Farm Technological Advance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(2), pages 243-263.
    3. Oscar R. Burt, 1986. "Econometric Modeling of the Capitalization Formula for Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 10-26.
    4. Emanuel Melichar, 1979. "Capital Gains versus Current Income in the Farming Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1085-1092.
    5. Moore, Kevin Clare, 1985. "Predictive econometric modeling of the United States farmland market: an empirical test of the rational expectations hypothesis," ISU General Staff Papers 198501010800008872, Iowa State University, Department of Economics.
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    1. Elad, R.L. & Clifton, I.D. & Epperson, J.E., 1994. "Hedonic Estimation Applied to the Farmland Market in Georgia," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 351-366, December.

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    Keywords

    Demand and Price Analysis; Marketing;

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