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Land Quality and Prices
Author(s) -
Peterson Willis
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242127
Subject(s) - quality (philosophy) , index (typography) , agricultural land , production (economics) , agricultural economics , land use , economics , land values , function (biology) , econometrics , environmental science , agriculture , natural resource economics , geography , microeconomics , ecology , computer science , philosophy , archaeology , epistemology , evolutionary biology , world wide web , biology
Although land values reflect land quality, the quality characteristics that determine values are only partly related to agricultural uses. The results of estimating a reduced‐form equation explaining differences in land prices among states suggest that nearly two‐thirds of this variation is attributed to nonagricultural uses. Therefore, a land quality index based on raw land prices will be biased, which in turn will result in biased coefficients in a production function or its dual. A cross‐section land quality index which excludes the influence of nonagricultural uses is constructed.