IDEAS home Printed from
   My bibliography  Save this paper

Farmland price bubbles: wavelet-based evidence


  • Power, Gabriel J.
  • Turvey, Calum G.


Land is the most important agricultural asset. Income risk due to farmland price volatility creates economic hardship for rural communities. Although inflation explains much of the farmland valuation problem, it remains to some extent a puzzle. We use wavelet-based statistical methods supported by econometrics to test a simple asset pricing model of land values in which a speculative price bubble is found in the real option value to land development. Theory suggests land as an asset is a good candidate for this hypothesis. The results show that a short-run speculative bubble appears to have been active in some years.

Suggested Citation

  • Power, Gabriel J. & Turvey, Calum G., 2006. "Farmland price bubbles: wavelet-based evidence," 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC 133088, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
  • Handle: RePEc:ags:nc2006:133088
    DOI: 10.22004/ag.econ.133088

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    More about this item


    Agricultural Finance; Land Economics/Use;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nc2006:133088. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.