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An empirical examination of the location and timing of non-renewals in a farmland differential assessment program

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  • Kent Kovacs

Abstract

We study the non-renewals of contracts in the farmland differential assessment program of California. An instrumental variable random-effect model for the location of non-renewals and a hazard model for the timing of non-renewals indicate that counties with high property tax rates have 0.8% lower odds of a non-renewal, transition slower to a rapid state of non-renewals by 4%, and transition faster to the slow state by 6%. This suggests differential assessment programs provide benefits to tax payers by preserving agricultural land and reducing how quickly development pressure causes non-renewals, and ultimately development, in farm communities. Counties at higher elevations transition faster to a rapid state of non-renewals by 4% and transition slower to the slow state by 2%. This suggests there should be more attention to development pressure at higher elevations, where regulations are weaker and amenities are greater. Copyright Springer-Verlag 2013

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  • Kent Kovacs, 2013. "An empirical examination of the location and timing of non-renewals in a farmland differential assessment program," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 245-263, February.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:1:p:245-263
    DOI: 10.1007/s00168-011-0474-0
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    1. Demirhan, Haydar & Kalaylioglu, Zeynep, 2015. "Joint prior distributions for variance parameters in Bayesian analysis of normal hierarchical models," Journal of Multivariate Analysis, Elsevier, vol. 135(C), pages 163-174.

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    More about this item

    Keywords

    R11; R12; R14;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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