Co‐integration analysis and the determinants of land prices

D. Hallam*, F. Machado, G. Rapsomanikis

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)

Abstract

This paper outlines the concept of co‐integration and its use in econometric modelling. The techniques of co‐integration analysis are described, with particular emphasis given to test procedures. Co‐integration between two or more variables is taken to imply the existence of a long‐run equilibrium relationship between them. Co‐integration analysis is applied in a re‐examination of recent empirical models of the determination of land prices in England and Wales. The results suggest that recent land price models do not describe longrun relationships between land prices and the explanatory variables selected. Criticisms of the different measurements of returns to land used in studies to date are sustained by the analysis, and a clear role for interest rates in the determination of land prices is indicated.

Original languageEnglish
Pages (from-to)28-37
Number of pages10
JournalJournal of Agricultural Economics
Volume43
Issue number1
DOIs
Publication statusPublished - Jan 1992
Externally publishedYes

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