A Spatial Analysis of Agricultural Land Prices in Bavaria
AbstractThis paper empirically analyses a dataset of more than 11,000 agricultural land sales transactions between 1999 and 2007 in order to identify the factors influencing agricultural land prices in Bavaria. The authors confirm strong spatial relationships in their dataset, and conclude that neglecting this leads to biased estimates, especially if aggregated data are used. They therefore use a general spatial model combining a spatial lag and a spatial error model, and find that the price of a specific plot increases by 32 cents/m2 when average sales prices in surrounding areas increase by €1.Research results also confirm the strong influence of land quality, urban pressure and land market structure, and that the involvement of public authorities as seller or buyer increases sales prices. The authors find that the Fischler Reform did not considerably change the market and its determinants.
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Bibliographic InfoPaper provided by Centre for European Policy Studies in its series Factor Markets Working Papers with number 162.
Length: 20 pages
Date of creation: Jun 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-12-15 (Agricultural Economics)
- NEP-ALL-2013-12-15 (All new papers)
- NEP-GEO-2013-12-15 (Economic Geography)
- NEP-URE-2013-12-15 (Urban & Real Estate Economics)
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