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Farmland Prices and the Return to Land: An Application of Causality Testing

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  • Phipps, Tim

Abstract

Tests are conducted to investigate the temporal relationship between farmland prices and the return to farmland. The return to land is found, as expected, to be a leading indicator of the price of farmland. The use of the ex post return as an input in a transfer function model with land price as an output resulted in a 23% reduction in the MSE obtained from a univariate land price model.

Suggested Citation

  • Phipps, Tim, 1982. "Farmland Prices and the Return to Land: An Application of Causality Testing," 1982 Annual Meeting, August 1-4, Logan, Utah 279162, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea82:279162
    DOI: 10.22004/ag.econ.279162
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    References listed on IDEAS

    as
    1. Dale M. Heien, 1980. "Markup Pricing in a Dynamic Model of the Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 10-18.
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