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The Spatial Structure of Farmland Values: A Semiparametric Approach

  • Haoying Wang
Abstract

Controlling for spatial heterogeneity and spatial dependence in farmland valuation models has gained substantial attention in recent literature. This paper proposes to derive the spatial structure of farmland values endogenously and semiparametrically based on the spatial competition theory. The paper assembles panel data of Pennsylvania county level farmland values between 1982 and 2012. A spatial autoregressive panel data model with spatial weights matrix endogenously incorporated is estimated. Out of sample predictions and non-nested statistical tests for model selection suggest that the fit and the predictability of hedonic farmland valuation models can be greatly improved.

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Copyright
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Corresponding author
Correspondence: Haoying Wang, Assistant Professor of ManagementDepartment of ManagementNew Mexico Tech801 Leroy PlaceSocorro, NM 87801USA ■ Email haoying.wang@nmt.edu
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Agricultural and Resource Economics Review
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