Language:
English
Pages:
1 Online-Ressource (23 Seiten)
DDC:
630
Keywords:
Farmland
;
lease rate
;
term structure
;
hedonic price model
;
privatization
;
Landwirtschaft und verwandte Bereiche
;
Sozialwissenschaften
Abstract:
This paper applies the concept of a term structure to agricultural land rental prices. Based on theoretical considerations, we develop a hedonic pricing model that allows for different shapes of the term structure curve while controlling for other price-relevant characteristics. We apply this model to land lease contracts in Saxony-Anhalt concluded between 2002 and 2010. We find an upward-sloping term structure at the beginning, that is, market participants expected increasing rental prices. For the subsequent years, however, we detect a singlehumped term structure. Hence, market participants revised their expectations and assumed a decline of land rental prices in the long-term.
URN:
urn:nbn:de:kobv:11-100219763
URL:
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