Peter Bell Working Papers
Published January 25, 2014 | Version 1
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Farmland Ownership Policy: Technical Paper

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Description

In this paper I develop a theoretical model to analyze policy that restricts who can own land. I briefly review research related to such policy in Saskatchewan, Canada, and identify a standard supply-demand model that I extend in several ways. First, I replicate results for how policy affects prices and develop new results for how policy affects social welfare using comparative statics. Second, I extend the model to a dynamic setting where demand curves change over time and show that policy can affect price changes in variety of ways, which I refer to as comparative dynamics. Third, I conduct a series of simulations to compare my model and a standard model. I establish stylistic facts about data on price levels, differences, and ratios generated by the different models.

 

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Item Type:    MPRA Paper
Original Title:    Farmland Ownership Policy: Technical Paper
Language:    English
Keywords:    Farmland, ownership, policy, demand and supply, comparative statics, comparative dynamics, simulation
Subjects:    C - Mathematical and Quantitative Methods > C0 - General > C00 - General
D - Microeconomics > D0 - General > D00 - General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment
Item ID:    53185
Depositing User:    Peter N Bell
Date Deposited:    26 Jan 2014 17:54
Last Modified:    10 Oct 2019 17:01
References:    
Bell, P.N. (2014). Farmland Ownership Restrictions: Between a Rock and a Hard Place. Unpublished manuscript, Department of Economics, University of Victoria, Victoria, Canada. Retrieved from http://mpra.ub.uni-muenchen.de/53033/

Carlberg, J.G. (2002). Effects of Ownership Restrictions on Farmland Values in Saskatchewan. Journal of Agricultural and Applied Economics, 34(2), 349—358.

Carlberg, J. & Furtan, H. (2003). Effects of Government Restrictions on Land Ownership: The Saskatchewan Case. In C. Moss & A. Schmitz (Eds.), Government Policy and Farmland Markets (pp. 391—406). Ames, IA: Iowa State Press.

Ferguson, S., Furtan, H., & Carlberg, J. (2006). The Political Economy of Farmland Ownership Regulations and Land Prices. Agricultural Economics, 35, 59—65.

Linklater, A. (2013). Owning the Earth: The Transforming History of Land Ownership. New York, NY: Bloomsbury USA.

Raup, P.M. (2003). Disaggregating Farmland Markets. In C. Moss & A. Schmitz (Eds.), Government Policy and Farmland Markets (pp.15—26). Ames, IA: Iowa State Press.

Turvey, C. (2003). Hysteresis and the Value of Farmland: A Real-Options Approach to Farmland Valuation. In C. Moss & A. Schmitz (Eds.), Government Policy and Farmland Markets (pp.179—208). Ames, IA: Iowa State Press.

URI:    https://mpra.ub.uni-muenchen.de/id/eprint/53185

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Copyrighted
2014-01-25
Working Paper