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Spatial Integration of Agricultural Land Markets

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  • Ritter, Matthias
  • Yang, Xinyue
  • Odening, Martin

Abstract

The focus of this paper is on spatial market integration in agricultural land markets. We scrutinize the applicability of the law of one price to land markets and distinguish between absolute and relative versions of this “law”. Panel data unit root and stationarity tests are applied to land sale prices in the German state Lower Saxony. Three main clusters with different price developments are detected. Our results indicate that the law of one price holds only locally due to structural differ-ences among regions.
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  • Ritter, Matthias & Yang, Xinyue & Odening, Martin, 2017. "Spatial Integration of Agricultural Land Markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258133, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea17:258133
    DOI: 10.22004/ag.econ.258133
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    Keywords

    Demand and Price Analysis; Agribusiness; Agricultural Finance;
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