Revisiting the relationship between farmland prices and soil quality

Abstract This paper aims to examine the relationship between soil quality and farmland prices over time. Soil is often used as an explanatory variable for in hedonic price models. However, agricultural land market has shown enormous increase last decade. Therefore, revisiting time of high relevance. study analyze series Germany. The are aggregated within intervals parcel size intervals, treated panel units. fully modified ordinary least squares (FMOLS) group mean dynamic (DOLS) estimators applied a cointegration regression approach estimate relation series. We found that causes relative difference identified long-run relationship.