The formation of offer prices in farmland markets: A hedonic price approach

Temel, Tugrul (2011): The formation of offer prices in farmland markets: A hedonic price approach.

Abstract

This study develops a game-theoretic framework to examine the preservation and capitalization effects of government farmland preservation policies. More specifically, emphasis is given to the effects of such policies on the number and type of land buyers, the distribution of offer price, and the mean waiting period. The results suggest that, in the context of the agricultural zoning policy, the final impact on the reservation price and mean waiting period depends on the magnitude of changes in the number and spread of the type of buyers.

• Item Type: MPRA Paper
• Language: English
• Keywords: hedonic price; Bayesian approach; farm land valuation; government farm policy.
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q28 - Government Policy; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C11 - Bayesian Analysis: General

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