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Jarmila Curtiss, Ladislav Jelínek, Tomáš Medonos, Martin Hruška, Silke Hüttel, Investors’ impact on Czech farmland prices: a microstructural analysis, European Review of Agricultural Economics, Volume 48, Issue 1, January 2021, Pages 97–157, https://doi.org/10.1093/erae/jbaa029
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Abstract
This paper analyses farmland price formation under investors’ increased demand in the Czech Republic from 2008 to 2014. We adopt a stochastic metafrontier approach to hedonic price modelling and investigate the relative differences in farm and investor pricing. Our results provide evidence of buyer group-specific land valuations, asymmetric price dispersions and their temporal changes. These changes reflect the developments of market microstructures and market-supporting institutions induced by buyer competition. While initially significantly lower due to high market and bargaining power, prices paid by corporate/cooperative farms converged with high-level investor prices over time. Individual and family farms were largely unable to compete at the new price levels.