Salois, Matthew and Moss, Charles and Erickson, Kenneth (2010): Farm Income, Population, and Farmland Prices: A Relative Information Approach.
Download (882Kb) | Preview
This paper uses an entropy-based information approach to determine if farmland values are more closely associated with urban pressure or farm income. The basic question is: how much information on changes in farm real estate values is contained in changes in population versus changes in returns to production agriculture? Results suggest population is informative, but changes in farmland values are more strongly associated with changes in the distribution of returns. However, this relationship is not true for every region nor does it hold over time, as for some regions changes in population are more informative. Results have policy implications for both equity and efficiency.
|Item Type:||MPRA Paper|
|Original Title:||Farm Income, Population, and Farmland Prices: A Relative Information Approach|
|Keywords:||entropy; land values; information theory; population growth.|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q24 - Land
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C11 - Bayesian Analysis: General
|Depositing User:||Matthew Salois|
|Date Deposited:||19. Nov 2010 17:40|
|Last Modified:||15. Feb 2013 19:42|
Alston, J.M. (1986) An analysis of growth of U.S. farmland prices, 1963-82. American Journal of Agricultural Economics, 68(1): 1-9.
Bernardo, J.M., and J. M. Ramon. (1998). An introduction to Bayesian reference analysis: inference on the ratio of multinomial parameters. Journal of the Royal Statistical Society 47(1): 101-135.
Burt, O.R. (1986) Econometric modeling of the capitalization formula for farmland prices. American Journal of Agricultural Economics, 68(1): 10-26.
Erickson, K.W., S.C. Blank, C.B. Moss, and A.K. Mishra. (2004) Regional changes in the distribution of net value added in U.S. agriculture, 1960 - 2002. Selected Paper for the 2004 Western Agricultural Economics Association Annual Meeting, July 1 - 3, Honolulu, Hawaii.
Granger, C.W., E. Maasoumi, and J. Racine. (2004) A dependence metric for possibly nonlinear processes. Journal of Time Series Analysis, 25(5): 649-669.
Jaynes, E.T. (1957) Information theory and statistical mechanics II. Physical Review, 108(2): 171-190.
Kullback S., and R.A. Liebler. (1951) On information and sufficiency. Annals of Mathematical Statistics, 22(1): 79-86.
Livanis, G., C.B. Moss, V.E. Breneman, and R.F. Nehring. (2006) Urban sprawl and farmland prices. American Journal of Agricultural Economics, 88(4): 915-929.
Maasoumi, E. (1993) A compendium to information theory in economics and econometrics. Econometric Reviews, 12(2): 137-181.
Marshall, A. (1907) Principles of Economics, 5th Edition. Macmillan: London, UK.
Newell, G., and C. Eves. (2007) The role of U.S. farmland in real estate portfolios. Journal of Real Estate Portfolio Management, 13(4): 317-327.
Shannon, C.E. (1948) A mathematical theory of communication. Bell System Technical Journal, 27: 379-423; 623-656.
Shi, Y.J., T.T Phipps, and D. Colyer. (1997). Agricultural land values under urbanizing influences. Land Economics, 73(1): 90-100.
Soofi, E.S. (1994) Capturing the intangible concept of information. Journal of the American Statistical Association, 89(428): 1243-1254.
Soofi, E.S. (2000) Principle theoretic approaches. Journal of the American Statistical Association, 95(452): 1349-1353.
Soofi, E.S., and J.J. Retzer. (2002) Information indices: unification and applications. Journal of Econometrics 107(1-2): 17-40.
Spall, J.C, and S.D. Hill. (1990) Least-informative Bayesian prior distributions for finite samples based on information theory. IEEE Transactions on Automatic Control 35(5): 580-583.
Theil, H. (1965) The information approach to demand analysis. Econometrica, 33(1): 67-87.
Theil, H. (1967) Economics and Information Theory. Elsevier Publishing Company, New York, NY.
Theil, H. (1979) World income inequality and its components. Economics Letters, 2(1): 99-102.
Theil, H. (1989) The development of international inequality: 1960-1985. Journal of Econometrics, 42(1): 145-155.
Tilanus, C.B., and H. Theil. (1965) The information approach to the evaluation of input-output forecasts. Econometrica, 33(4): 847-862.
Uribe, P., C.G. de Leeuw, and H. Theil. (1966) The information approach to the prediction of inter-regional trade flows. Review of Economic Studies, 33(3): 209-220.