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Land Markets in Europe: Institutions and Market Outcomes

Author

Listed:
  • Pavel Ciaian
  • d'Artis Kancs
  • Dusan Drabik

Abstract

In this chapter, we review land market institutions in the European Union (EU) and their potential impact on land markets. We first review land tenure-/ownership regulations and find that they vary heavily across EU Member States. Four types of tenure-/ownership measures are implemented in the EU: to protect the tenant, to protect the owner, to protect the (non-farm) land owner, and to prevent land fragmentation. We then examine EU land-related environmental regulations whose general objective is to address land market failures linked to externalities and the provision of public goods. Despite possibly reducing private benefits of land owners or users, environmental regulations may generate welfare gains to society by improving the environmental services on land. Finally, we investigate how area-based subsidies affect land prices. These subsidies are empirically found to be partially capitalized into land values, albeit at a lower rate than suggested by theory.

Suggested Citation

  • Pavel Ciaian & d'Artis Kancs & Dusan Drabik, 2016. "Land Markets in Europe: Institutions and Market Outcomes," EERI Research Paper Series EERI RP 2016/10, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2016_10
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2016_10.pdf
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    References listed on IDEAS

    as
    1. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Sales Market Regulations for Agricultural Land in EU Member States and Candidate Countries," Factor Markets Working Papers 116, Centre for European Policy Studies.
    2. Joel Karlsson & Pia Nilsson, 2014. "Capitalisation of Single Farm Payment on farm price: an analysis of Swedish farm prices using farm-level data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 41(2), pages 279-300.
    3. Pavel Ciaian & d'Artis Kancs & Jo Swinnen, 2008. "Static and Dynamic Distributional Effects of Decoupled Payments," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 51(2), pages 20-47.
    4. repec:bla:jageco:v:68:y:2017:i:3:p:710-726 is not listed on IDEAS
    5. Pavel Ciaian & D'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 643-673.
    6. DRABIK, Dušan & RAJČÁNIOVÁ, Miroslava, 2014. "Agricultural Land Market In Slovakia Under The New Land Acquisition Law," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-4, October.
    7. Pavel Ciaian & d’Artis Kancs, 2012. "The Capitalization of Area Payments into Farmland Rents: Micro Evidence from the New EU Member States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(4), pages 517-540, December.
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    25. Ciaian, Pavel & Swinnen, Johan F.M., 2006. "AJAE Appendix: Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 88(4), pages 1-10, November.
    26. Ciaian, Pavel, & Kancs, d’Artis & Swinnen, Jo & Van Herck, Kristine & Vranken, Liesbet, 2012. "Rental Market Regulations for Agricultural Land in EU Member States and Candidate Countries," Factor Markets Working Papers 117, Centre for European Policy Studies.
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    More about this item

    Keywords

    Land markets; institutions; tenure; ownership; externalities; public goods.;

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • P32 - Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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