Present-value models of land prices in England and Wales

T. A. Lloyd; A. J. Rayner; Chris D. Orme

doi:10.1093/erae/18.2.141

Present-value models of land prices in England and Wales

T. A. Lloyd, A. J. Rayner, Chris D. Orme

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Presents some parsimonious econometric models of the relationship between land prices and cash rents derived from an encompassing present-value framework. Alternatives based on adaptive, naive and rational (or perfect foresight) expectations are applied to three separate data sets on annual land prices in England and Wales. The empirical results support the adaptive expectations versions and imply that a real rate of discount of 2-3% per yr is used in the land market. The notion of disequilibrium pricing is examined but is not supported in the sample period. -Authors

Original language	English
Pages (from-to)	141-166
Number of pages	25
Journal	European Review of Agricultural Economics
Volume	18
Issue number	2
DOIs	https://doi.org/10.1093/erae/18.2.141
Publication status	Published - 1991

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10.1093/erae/18.2.141

http://erae.oxfordjournals.org/cgi/content/abstract/18/2/141

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title = "Present-value models of land prices in England and Wales",

abstract = "Presents some parsimonious econometric models of the relationship between land prices and cash rents derived from an encompassing present-value framework. Alternatives based on adaptive, naive and rational (or perfect foresight) expectations are applied to three separate data sets on annual land prices in England and Wales. The empirical results support the adaptive expectations versions and imply that a real rate of discount of 2-3% per yr is used in the land market. The notion of disequilibrium pricing is examined but is not supported in the sample period. -Authors",

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AB - Presents some parsimonious econometric models of the relationship between land prices and cash rents derived from an encompassing present-value framework. Alternatives based on adaptive, naive and rational (or perfect foresight) expectations are applied to three separate data sets on annual land prices in England and Wales. The empirical results support the adaptive expectations versions and imply that a real rate of discount of 2-3% per yr is used in the land market. The notion of disequilibrium pricing is examined but is not supported in the sample period. -Authors

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Present-value models of land prices in England and Wales

Abstract

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