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Nonparametric analysis of the influence of buyers' characteristics and personal relationships on agricultural land prices

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  • Philip Kostov

    (Lancashire Business School, University of Central Lancashire, Preston PR1 2HE, United Kingdom)

  • Myles Patton

    (Agri-Food and Biosciences Institute, Newforge Lane, Belfast, BT9 5PX Northern Ireland)

  • Seamus McErlean

    (Department of Agricultural and Rural Development, Dundonald House, Upper Newtownards Road, Belfast BT4 3SB, Northern Ireland)

Abstract

The influence of buyer and personal relationship characteristics on agricultural land prices has received little attention in the literature. Recently, G.M. Perry and L.J. Robinson (2001) used a restricted nonlinear specification to model the influence of personal relationships (and other factors) on the implicit prices of land characteristics. In this article, we extend and generalize their specification using nonparametric neural networks. The results indicate that buyer characteristics and personal relationships affect the terms of trade in the land market, which is consistent with the social capital hypothesis. The impact of buyer characteristics and personal relationships on the implicit prices of land characteristics is, however, non-uniform and highly nonlinear. [EconLit citations: C290, D450, Q150]. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Philip Kostov & Myles Patton & Seamus McErlean, 2008. "Nonparametric analysis of the influence of buyers' characteristics and personal relationships on agricultural land prices," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 161-176.
    • Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:161-176
    DOI: 10.1002/agr.20152
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    Cited by:

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    3. Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(1), pages 17-33, February.
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    6. Philip Kostov, 2010. "Do Buyers’ Characteristics and Personal Relationships Affect Agricultural Land Prices?," Land Economics, University of Wisconsin Press, vol. 86(1), pages 48-65.

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