RT Journal Article
SR Electronic
T1 Farmland Owners’ Land Sale Preferences: Can They Be Affected by Taxation Programs?
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 245
OP 262
DO 10.3368/le.86.2.245
VO 86
IS 2
A1 Myyrä, Sami
A1 Pouta, Eija
YR 2010
UL http://le.uwpress.org/content/86/2/245.abstract
AB Land ownership fragmentation has resulted in the neglect of land improvement in many countries. This study aims to analyze whether this challenge could be resolved by a tax policy that encourages land sales. Using Finnish data, real estate tax and temporal relaxation on taxation of capital gains showed some potential for the restructuring of land ownership. Potential sellers who could not be revealed by traditional logit models were identified with the latent class approach. Those landowners with an intention to sell even without a policy change were sensitive to temporal relaxation in the taxation of capital gains. (JEL H21, Q15)