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New Land Valuation System for an Economy without a Land Market

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  • Sipos, Aladar

Abstract

A new land valuation system was developed, consisting of two elements: the ecological valuation of land, based on the fact that the natural dactors (soil, climate, land relief, and hydrological factors) can be separately valued and the result expressed by a single value, and the economic valuation of land, based on the principle of returns to land as a factor of production. The basis for the economic valuation of land is the earning of rent-like income on farms with better than marginal land. On the basis of differences in land rent, 23 such economic districts could be formed, taking in major areas of the country. The new land valuation system accounts for more of the variation in land rents than does the old system, or a system that only uses ecological factors.

Suggested Citation

  • Sipos, Aladar, 1989. "New Land Valuation System for an Economy without a Land Market," 1989 Occasional Paper Series No. 5 197723, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo5:197723
    DOI: 10.22004/ag.econ.197723
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    Keywords

    Land Economics/Use; Public Economics;

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