RT Journal Article
SR Electronic
T1 The Spatial and Temporal Diffusion of Agricultural Land Prices
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 108
OP 123
DO 10.3368/le.95.1.108
VO 95
IS 1
A1 Yang, Xinyue
A1 Odening, Martin
A1 Ritter, Matthias
YR 2019
UL http://le.uwpress.org/content/95/1/108.abstract
AB In the last decade, many parts of the world experienced severe increases in agricultural land prices. This price surge, however, did not take place evenly in space and time. To better understand the spatial and temporal behavior of land prices, we employ a price diffusion model that combines features of market integration models and spatial econometric models. An application of this model to farmland prices in Germany shows that prices on a county-level are cointegrated. Apart from convergence toward a long-run equilibrium, we find that price transmission experiences short-term adjustments caused by neighboring regions. (JEL C23, Q24)