Farmland Ownership Policy: Technical Paper

Bell, Peter N (2014): Farmland Ownership Policy: Technical Paper.

Abstract

In this paper I develop a theoretical model to analyze policy that restricts who can own land. I briefly review research related to such policy in Saskatchewan, Canada, and identify a standard supply-demand model that I extend in several ways. First, I replicate results for how policy affects prices and develop new results for how policy affects social welfare using comparative statics. Second, I extend the model to a dynamic setting where demand curves change over time and show that policy can affect price changes in variety of ways, which I refer to as comparative dynamics. Third, I conduct a series of simulations to compare my model and a standard model. I establish stylistic facts about data on price levels, differences, and ratios generated by the different models.

• Item Type: MPRA Paper
• Language: English
• Keywords: Farmland, ownership, policy, demand and supply, comparative statics, comparative dynamics, simulation
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C00 - General; D - Microeconomics > D0 - General > D00 - General; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment

References

Bell, P.N. (2014). Farmland Ownership Restrictions: Between a Rock and a Hard Place. Unpublished manuscript, Department of Economics, University of Victoria, Victoria, Canada. Retrieved from http://mpra.ub.uni-muenchen.de/53033/

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