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Land Prices and Technological Development

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  • van Dijk, G
  • Smit, L
  • Veerman, C P

Abstract

Land prices in the Netherlands are strongly influenced by technological change in agriculture. These effects are described by applying the cost-push innovation hypothesis. Land prices are the outcome of a price-formation process. Market behavior and the sampling interval of the data (annual) require the use of a simultaneous-equations approach. The identification of demand and supply in such a model is discussed. The statistical results of simultaneous models for two regions in the Netherlands are presented. The estimated parameters do not lead to proper empirical identification of demand and supply. Recursive models yield better statistical results. Copyright 1986 by Oxford University Press.

Suggested Citation

  • van Dijk, G & Smit, L & Veerman, C P, 1986. "Land Prices and Technological Development," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 13(4), pages 495-515.
    • Handle: RePEc:oup:erevae:v:13:y:1986:i:4:p:495-515
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