Forced Sales and Farmland Prices
AbstractIn this paper we analyse agricultural land prices in the German Federal State of Brandenburg within the period 2000-2011. Our objective is to understand the price formation process in foreclosures. One effect of foreclosures relates to pressured sales, which likely lead to a price discount, and another effect relates to public auctions leading to a price premium. The overall effect is derived using direct covariate matching. Our results show that on average, price premia rather than price discounts are realized in forced sales of farmland. The price differential, however, is not constant and depends on prevailing land market conditions.
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Bibliographic InfoPaper provided by Humboldt University Berlin, Department of Agricultural Economics in its series Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers with number 129063.
Date of creation: May 2012
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Forced sales; land prices; treatment effect; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Demand and Price Analysis; Farm Management; Institutional and Behavioral Economics; Labor and Human Capital; Q120; Q150; D490;
Other versions of this item:
- Odening, Martin & Jetzinger, Simon & Huettel, Silke, 2013. "Forced Sales and Farmland Prices," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150274, Agricultural and Applied Economics Association.
- Huttel, Silke & Jetzinger, Simon & Odening, Martin, 2012. "Forced Sales And Farmland Prices," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 133413, German Association of Agricultural Economists (GEWISOLA).
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