Can Agricultural Disaster Relief Programs Affect Farmland Prices? Empirical Evidence from Farmland Transaction Data

The literature on the capitalization of agricultural policies documents that government subsidies can increase farmland values with attesting empirical evidence found in a variety programs. This study argues well-documented effect prices may not be directly related to disaster relief program (ADRP). On one hand, payments positively capitalize into prices. other shocks result farm income loss which decrease paper empirically examines overall ADRP Taiwan. A unique dataset 97,864 parcels transacted market is used. By estimating fixed and instrumental variable model, negative incidence level evident. Moreover, more pronounced among located urban areas. finding provides stigmatized dominates positive values, especially for areas (JEL Q15, Q18, Q54).