RT Journal Article
SR Electronic
T1 The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 411
OP 432
DO 10.3368/le.92.3.411
VO 92
IS 3
A1 Feichtinger, Paul
A1 Salhofer, Klaus
YR 2016
UL http://le.uwpress.org/content/92/3/411.abstract
AB Based on 7,300 agricultural land sales transactions, we estimate the effect of the 2003 reform of the E.U. Common Agricultural Policy on land prices. As opposed to the main body of the literature on agricultural land values, we do not start from a demand-oriented net present value approach or hedonic pricing method, but derive our reduced form pricing equation from a spatial land sales market model. Our empirical model accounts for spatial dependence and endogeneity of explanatory variables. A reduction of payments by 50 €/ha would decrease land sales prices by 445 €/ha before and by 984 €/ha after the reform. (JEL Q15, Q18)