RT Journal Article
SR Electronic
T1 Information Rigidities and Farmland Value Expectations
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 102623-0111R1
DO 10.3368/le.101.2.102623-0111R1
A1 Fiechter, Chad
A1 Kuethe, Todd
A1 Zhang, Wendong
YR 2024
UL http://le.uwpress.org/content/early/2024/11/25/le.101.2.102623-0111R1.abstract
AB This study examines the degree to which information inefficiency influences farmland price expectations. Using expectations and observed values of Iowa farmland from 1964 to 2021 and the empirical test of Coibion and Gorodnichenko (2015), this study estimates the degree to which information rigidities hold explanatory power for information inefficiency. Our results suggest Iowa farmland professionals infrequently update their information set or underweight new information. This study provides a necessary step toward a better understanding of the role of information in farmland market efficiency, furthering the discussion of development of additional public information in farmland markets.