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Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition >
Proceedings: 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/133088
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| Title: | Farmland price bubbles: wavelet-based evidence |
| Authors: | Power, Gabriel J.
Turvey, Calum G. |
| Issue Date: | 2006 |
| Abstract: | Land is the most important agricultural asset. Income risk due to farmland price volatility creates
economic hardship for rural communities. Although inflation explains much of the farmland
valuation problem, it remains to some extent a puzzle. We use wavelet-based statistical methods
supported by econometrics to test a simple asset pricing model of land values in which a
speculative price bubble is found in the real option value to land development. Theory suggests
land as an asset is a good candidate for this hypothesis. The results show that a short-run
speculative bubble appears to have been active in some years. |
| URI: | http://purl.umn.edu/133088 |
| Institution/Association: | Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition>2006 Proceedings: Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC |
| Total Pages: | 6 |
| Collections: | Proceedings: 2006 Agricultural and Rural Finance Markets in Transition, October 2-3, 2006, Washington, DC
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| Power2006.pdf | | 127Kb | PDF | View/Open |
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