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Measuring Liquidity in Agricultural Land Markets
Humboldt-Universität zu Berlin, Faculty of Life Sciences, Department of Agricultural Economics, Berlin.
Humboldt-Universität zu Berlin, Faculty of Life Sciences, Department of Agricultural Economics, Berlin.
Humboldt-Universität zu Berlin, Faculty of Life Sciences, Department of Agricultural Economics, Berlin.
Humboldt-Universität zu Berlin, Faculty of Life Sciences, Department of Agricultural Economics, Berlin.ORCID iD: 0000-0003-2543-3673
2020 (English)Report (Other academic)
Abstract [en]

This paper contributes to the sparse empirical literature on measuring liquidity in agricultural landmarkets. Using data from Lower Saxony (Germany), we inspect the spatial and temporal variabilityof various liquidity indicators. We apply a panel vector autoregression (VAR) and Granger causalitytests to examine the relationship between liquidity and prices and to identify further determinantsof land market liquidity, such as supply shocks and clientele effects. Unlike in housing markets, nopositive relationship between prices and market liquidity exists. We conclude that in agriculturalland markets, a high demand from expanding farms absorbs supply shocks regardless of prevailingprices.

Place, publisher, year, edition, pages
Berlin: DFG Research Unit 2569 FORLand, Humboldt-Universität zu Berlin , 2020. , p. 22
Series
FORLand-Working Paper ; 25
Keywords [en]
Agricultural land markets, liquidity indicators, panel vector autoregressive model, Granger causality
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-55173DOI: 10.18452/22244OAI: oai:DiVA.org:hj-55173DiVA, id: diva2:1614844
Available from: 2021-11-27 Created: 2021-11-27 Last updated: 2021-11-27Bibliographically approved

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Ritter, Matthias

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