Understanding farmland price changes

This paper develops a structural model of land prices which includes the multidimensional effects of inflation on capital-erosion, savings-return erosion, and real debt reduction as well as the effect of changes in the opportunity cost of capital. The results show that inflation and changes in the r...

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Bibliographic Details
Published in:American journal of agricultural economics 1993-02, Vol.75 (1), p.156-168
Main Authors: Just, R.E. (University of Maryland), Miranowski, J.A
Format: Article
Language:English
Subjects:
Agricultural economics
Agricultural land
AHORROS
ANALISIS DE COSTOS
ANALYSE DES COUTS
CAPITAL
COSTOS DE OPORTUNIDAD
COUT D'OPPORTUNITE
Debt
DETTE
DEUDAS
Economic models
EPARGNE
ESTADOS UNIDOS DE AMERICA
ETATS UNIS
Farming
Farmland prices
Income taxes
INFLACION
INFLATION
Inflation rates
Land
Land prices
MODELE ECONOMETRIQUE
MODELOS ECONOMETRICOS
Opportunity costs
PRECIOS
Prices
PRISE DE DECISION
PRIX
Q150
Savings
TERRE
TERRE AGRICOLE
TIERRAS
TIERRAS AGRICOLAS
TOMA DE DECISIONES
Transaction costs
U.S.A
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Summary:This paper develops a structural model of land prices which includes the multidimensional effects of inflation on capital-erosion, savings-return erosion, and real debt reduction as well as the effect of changes in the opportunity cost of capital. The results show that inflation and changes in the real returns on capital are major explanatory factors in farmland price swings in addition to returns to farming. Additionally, the effects of credit market constraints and expectations schemes are considered explicitly in the analytical model
ISSN:0002-9092
1467-8276
DOI:10.2307/1242964