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The common agricultural policy of the EU and agricultural land prices - a spatial econometric approach for Bavaria

Author

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  • Feichtinger, Paul
  • Salhofer, Klaus
Abstract
We empirically analyze 7,300 agricultural land sales transactions in 2001 and 2007 to identify factors influencing agricultural land sales prices in Bavaria. To account for the importance of space in land markets, we utilize a general spatial model including a spatial lag and a spatial error. Our findings confirm a significant capitalization of government payments into land prices. A reduction of payments by 50 €/ha would decrease land sales prices by 849 €/ha (280 €/ha) in 2007 (2001). Hence, the 2003 Fischler Reform has increased the capitalization effect. Moreover, we find a strong influence of land productivity, urban pressure and the regional land market structure on agricultural land sales prices.

Suggested Citation

  • Feichtinger, Paul & Salhofer, Klaus, 2014. "The common agricultural policy of the EU and agricultural land prices - a spatial econometric approach for Bavaria," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182751, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182751
    DOI: 10.22004/ag.econ.182751
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    Cited by:

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    3. Storm, Hugo & Heckelei, Thomas, 2016. "Local and regional spatial interactions of Norwegian farm growth," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235576, Agricultural and Applied Economics Association.
    4. Storm, Hugo & Heckelei, Thomas, 2016. "Using Multiple Neighboring Interaction Effects In Spatial Regression Specifications To Reduce Omitted Variable Bias," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244763, German Association of Agricultural Economists (GEWISOLA).

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    Keywords

    Agricultural and Food Policy; Land Economics/Use;

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