Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2002

Journal or Book Title

Southern Economic Journal

Volume

68

Issue

3

First Page or Article ID Number

549

Last Page

565

DOI

10.2307/1061717

Abstract

The present study introduces a theoretical land pricing model that allows for proportional transaction costs, and a corresponding kernel regression test. The model is tested with farmland returns data for 20 individual states, and also with two aggregate U.S. level series. The constant discount rate (CDR) present value model (PVM) of farmland prices is strongly rejected. However, it is found that the behavior of land prices and rents is consistent with the CDR-PVM in the presence of empirically observed values of transaction costs. Findings are very robust in that they apply to both individual state-level data and the U.S. aggregate-level series.

Comments

This article is from Southern Economic Journal 68 (2002): 549, doi:10.2307/1061717. Posted with permission.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

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