Investigating the Determinants of Finnish Agricultural Land Prices Using Generalised Additive Model

Juho Valtiala; Sami Ovaska; Timo Sipiläinen

doi:10.22004/ag.econ.288447

Investigating the Determinants of Finnish Agricultural Land Prices Using Generalised Additive Model

Juho Valtiala, Sami Ovaska, Timo Sipiläinen

Research output: Conference materials › Paper

Abstract

The agricultural sector in Finland has witnessed a rapid structural change since the Finnish EUaccession. At the same time, agricultural land prices have increased considerably. Using a hedonic pricing model, we investigated the characteristics affecting the prices of parcels sold. We analysed a dataset consisting of over a thousand additional agricultural land transactions and discovered several regional and production related characteristics affecting prices. The generalised additive modelling framework enabled estimation of a regional price level as a smooth trend surface. The model captured spatial dependency in the prices while retaining the sensible interpretation of the results.

Original language	English
DOIs	https://doi.org/10.22004/ag.econ.288447
Publication status	Published - 27 Feb 2019
MoE publication type	Not Eligible
Event	Agricultural Land Markets – Recent Developments, Efficiency and Regulation: 165th EAAE seminar - Humboldt-Universität zu Berlin, Berlin, Germany Duration: 4 Apr 2019 → 5 Apr 2019 https://www.agrar.hu-berlin.de/en/institut-en/departments/daoe/abl-en/eaae165/

Seminar

Seminar	Agricultural Land Markets – Recent Developments, Efficiency and Regulation
Country/Territory	Germany
City	Berlin
Period	04/04/2019 → 05/04/2019
Internet address	https://www.agrar.hu-berlin.de/en/institut-en/departments/daoe/abl-en/eaae165/

Fields of Science

511 Economics

Access to Document

10.22004/ag.econ.288447

Cite this

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title = "Investigating the Determinants of Finnish Agricultural Land Prices Using Generalised Additive Model",

abstract = "The agricultural sector in Finland has witnessed a rapid structural change since the Finnish EUaccession. At the same time, agricultural land prices have increased considerably. Using a hedonic pricing model, we investigated the characteristics affecting the prices of parcels sold. We analysed a dataset consisting of over a thousand additional agricultural land transactions and discovered several regional and production related characteristics affecting prices. The generalised additive modelling framework enabled estimation of a regional price level as a smooth trend surface. The model captured spatial dependency in the prices while retaining the sensible interpretation of the results.",

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AU - Sipiläinen, Timo

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N2 - The agricultural sector in Finland has witnessed a rapid structural change since the Finnish EUaccession. At the same time, agricultural land prices have increased considerably. Using a hedonic pricing model, we investigated the characteristics affecting the prices of parcels sold. We analysed a dataset consisting of over a thousand additional agricultural land transactions and discovered several regional and production related characteristics affecting prices. The generalised additive modelling framework enabled estimation of a regional price level as a smooth trend surface. The model captured spatial dependency in the prices while retaining the sensible interpretation of the results.

AB - The agricultural sector in Finland has witnessed a rapid structural change since the Finnish EUaccession. At the same time, agricultural land prices have increased considerably. Using a hedonic pricing model, we investigated the characteristics affecting the prices of parcels sold. We analysed a dataset consisting of over a thousand additional agricultural land transactions and discovered several regional and production related characteristics affecting prices. The generalised additive modelling framework enabled estimation of a regional price level as a smooth trend surface. The model captured spatial dependency in the prices while retaining the sensible interpretation of the results.

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