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Farmland Ownership Policy: Technical Paper

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  • Bell, Peter N

Abstract

In this paper I develop a theoretical model to analyze policy that restricts who can own land. I briefly review research related to such policy in Saskatchewan, Canada, and identify a standard supply-demand model that I extend in several ways. First, I replicate results for how policy affects prices and develop new results for how policy affects social welfare using comparative statics. Second, I extend the model to a dynamic setting where demand curves change over time and show that policy can affect price changes in variety of ways, which I refer to as comparative dynamics. Third, I conduct a series of simulations to compare my model and a standard model. I establish stylistic facts about data on price levels, differences, and ratios generated by the different models.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 53185.

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Date of creation: 25 Jan 2014
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Handle: RePEc:pra:mprapa:53185

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Keywords: Farmland; ownership; policy; demand and supply; comparative statics; comparative dynamics; simulation;

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  1. Carlberg, Jared G., 2002. "Effects Of Ownership Restrictions On Farmland Values In Saskatchewan," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(02), August.
  2. Bell, Peter N, 2014. "Farmland Ownership Restrictions: Between a Rock and a Hard Place," MPRA Paper 53033, University Library of Munich, Germany.
  3. Shon Ferguson & Hartley Furtan & Jared Carlberg, 2006. "The political economy of farmland ownership regulations and land prices," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 59-65, 07.
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