Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/213065
Authors: 
Kahle, Christoph
Seifert, Stefan
Hüttel, Silke
Year of Publication: 
2019
Series/Report no.: 
FORLand-Working Paper No. 11 (2019)
Abstract: 
This article investigates the role played by informational cost in agricultural land markets to explain price dispersion. Based on a hedonic model under incomplete information, we build a two-tier stochastic frontier. By linking costs of being information deficient to agent characteristics such as degree of professionalism, we identify relative price effects of buyers and sellers related to search. We compile a comprehensive data set of more than 10,000 transactions in Saxony-Anhalt, Germany, between 2014 and 2017. We find institutional sellers to achieve the lowest losses resulting from information deficiency while tenant buyers can benefit from informational advantages. We conclude that Germany's policy-makers can do more to support market transparency.
Subjects: 
farmland markets
hedonic pricing
information deficiency
two-tier frontier
JEL: 
D82
D83
Q15
Q24
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/de/
Document Type: 
Working Paper

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