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Nonparametric analysis of the influence of buyers' characteristics and personal relationships on agricultural land prices

Author

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  • Philip Kostov

    (Lancashire Business School, University of Central Lancashire, Preston PR1 2HE, United Kingdom)

  • Myles Patton

    (Agri-Food and Biosciences Institute, Newforge Lane, Belfast, BT9 5PX Northern Ireland)

  • Seamus McErlean

    (Department of Agricultural and Rural Development, Dundonald House, Upper Newtownards Road, Belfast BT4 3SB, Northern Ireland)

Abstract
The influence of buyer and personal relationship characteristics on agricultural land prices has received little attention in the literature. Recently, G.M. Perry and L.J. Robinson (2001) used a restricted nonlinear specification to model the influence of personal relationships (and other factors) on the implicit prices of land characteristics. In this article, we extend and generalize their specification using nonparametric neural networks. The results indicate that buyer characteristics and personal relationships affect the terms of trade in the land market, which is consistent with the social capital hypothesis. The impact of buyer characteristics and personal relationships on the implicit prices of land characteristics is, however, non-uniform and highly nonlinear. [EconLit citations: C290, D450, Q150]. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Philip Kostov & Myles Patton & Seamus McErlean, 2008. "Nonparametric analysis of the influence of buyers' characteristics and personal relationships on agricultural land prices," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 161-176.
    • Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:161-176
    DOI: 10.1002/agr.20152
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    References listed on IDEAS

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    9. Myles Patton & Seamus McErlean, 2003. "Spatial Effects within the Agricultural Land Market in Northern Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 35-54, March.
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    14. Richard W. Dunford & Carole E. Marti & Ronald C. Mittelhammer, 1997. "A Case Study of Rural Land Prices at the Urban Fringe Including Subjective Buyer Expectations," Land Economics, University of Wisconsin Press, vol. 62(1), pages 10-16.
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    Cited by:

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    2. Philip Kostov & Sophia Davidova & Alistair Bailey, 2018. "Effect of family labour on output of farms in selected EU Member States: a non-parametric quantile regression approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(3), pages 367-395.
    3. Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(1), pages 17-33, February.
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    5. Reyes-Bueno, Fabián & García-Samaniego, Juan Manuel & Sánchez-Rodríguez, Aminael, 2018. "Large-scale simultaneous market segment definition and mass appraisal using decision tree learning for fiscal purposes," Land Use Policy, Elsevier, vol. 79(C), pages 116-122.
    6. Philip Kostov, 2010. "Do Buyers’ Characteristics and Personal Relationships Affect Agricultural Land Prices?," Land Economics, University of Wisconsin Press, vol. 86(1), pages 48-65.

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