The Potential for Industrial Activity among EU Regions: An Empirical Analysis at the NUTS2 Level

Diskussionspapiere extern , 28 S.

Martin Gornig, Axel Werwatz

Berlin: HU Berlin, 2019, 28 S.
(FORLand Working Papers ; 13)

Abstract

In the last decade, many parts of the world experienced severe increases in agricultural land prices. This price surge, however, did not take place evenly in space and time. To better understand the spatial and temporal behavior of land prices, we employ a price diffusion model that combines features of market integration models and spatial econometric models. An application of this model to farmland prices in Germany shows that prices on a county-level are cointegrated. Apart from convergence towards a long-run equilibrium, we find that price transmission also proceeds through short-term adjustments caused by neighboring regions.

Martin Gornig

Stellvertretender Abteilungsleiter in der Abteilung Unternehmen und Märkte



JEL-Classification: Q24;C23
Keywords: Agricultural land markets; price diffusion; spatial dependence; ripple effect
DOI:
https://doi.org/10.18452/20909