- Series Information
- List of Contributors
- Introduction: Land as an Integrating Theme in Economics
- Integrating Regional Economic Development Analysis and Land Use Economics
- Technology Adoption and Land Use
- Are Large Metropolitan Areas Still Viable?
- Modeling the Land Use Change with Biofuels
- Modeling the Determinants of Farmland Values in the United States
- Land Use and Sustainable Economic Development: Developing World
- The Economics of Wildlife Conservation
- Connecting Ecosystem Services to Land Use: Implications for Valuation and Policy
- Land Use and Climate Change
- Land Use, Climate Change, and Ecosystem Services
- Fire: An Agent and a Consequence of Land Use Change
- Land Use and Municipal Profiles
- An Assessment of Empirical Methods for Modeling Land Use
- Equilibrium Sorting Models of Land Use and Residential Choice
- Landscape Simulations with Econometric-Based Land Use Models
- An Economic Perspective on Agent-Based Models of Land Use and Land Cover Change
- Spatial Econometric Modeling of Land Use Change
- Using Quasi-Experimental Methods to Evaluate Land Policies: Application to Maryland’s Priority Funding Legislation
- Applying Experiments to Land Economics: Public Information and Auction Efficiency in Ecosystem Service Markets
- Open Space Preservation: Direct Controls and Fiscal Incentives
- Land Conservation in the United States
- European Agri-Environmental Policy: The Conservation and Re-Creation of Cultural Landscapes
- Agri-Environmental Policies: A Comparison of US and EU Experiences
- Stigmatized Sites and Urban Brownfield Redevelopment
- Regulatory Takings
- Eminent Domain and the Land Assembly Problem
- Future Research Directions in Land Economics
- Subject Index
Abstract and Keywords
Farmland has long represented a significant component of both farm sector and farm household assets. This chapter provides a comprehensive overview of significant developments in modeling farmland values, with attention to methodological challenges and recent modeling innovations. After outlining the capitalization model that provides the theoretical underpinnings for most farmland value studies, the merits and efficacy of dynamic models using aggregate data, as well as increasingly popular cross-sectional hedonic models that use spatially disaggregate data are presented. Estimation issues in hedonic models are reviewed, with a focus on those deserving special consideration in the context of farmland values such as spatial dependence and heterogeneity and sample selection bias. Promising future research directions include greater use of nonparametric approaches, quasi-experimental designs, panel data analyses, and structural econometric models, which take advantage of spatially explicit farmland values data but avoid the restrictive assumptions of standard spatial lag and spatial error models.
Cynthia J. Nickerson is an agricultural economist in the Resource and Rural Economics Divison of the US Department of Agriculture Economic Research Service.
Wendong Zhang is a doctoral student in the Department of Agricultural, Environmental, and Developmental Economics at the Ohio State University.
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