Publication Date
2-1982
Series Number
82-WP 1
Abstract
In a number of recent papers, Martin Feldstein has hypothesized that expected inflation may increase the real value of assets such as farm real estate. In this paper, simple models of the value of U.S. farm real estate were developed to test this hypothesis. Both adaptive expectations and "rational" interest rate-based expectations of future inflation were considered. Adaptive expectations measures for expected inflation generally suggested a negative impact of inflation on real estate value. The interest rate-based expectation measures had a positive coefficient in all cases but only in one case out of six was this coefficient significant.
Publication Information
Paper presented to the Southern Agricultural Economics Association Meetings, February 7-10, 1982, Orlando, Florida
Copyright Owner
Author(s)
Copyright Date
1982
Recommended Citation
Martin, W. J. and Heady, Earl O., "Inflationary Expectations and the Value of U.S. Farm Real Estate: Some Consistent Estimates" (1982). CARD Working Papers. 11.
https://lib.dr.iastate.edu/card_workingpapers/11
Included in
Agribusiness Commons, Agricultural and Resource Economics Commons, Agricultural Economics Commons, Economics Commons, Real Estate Commons