Common values and unobserved heterogeneity in farmland auctions in Germany

Arbeitspapier

In this paper, we test for the existence of a common component in agricultural land auctions in eastern Germany during the price boom 2007-2018 and discuss respective policy implications. Using a large, detailed dataset of auctions, we can rely on professional appraisals of the auctioned good that are privy to the seller to control for unobserved heterogeneity. We derive a new approach to disentangle valuations from observed and unobserved heterogeneity across auctions. For validation purposes we provide several model specifications; based on all models, we strongly reject purely private valuations. Based on the rich identification strategy, we conclude the existence of a common component in these auctions to be very likely. Our results first underline the importance of an adequate model specification to analyze farmland auctions. Second, from a policy perspective, the implied potential for a winner's curse can be seen as a warning sign for the sector.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: FORLand-Working Paper ; No. 21 (2020)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Econometrics of Games and Auctions ; Auctions ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
• Thema: Farmland auctions ; common values ; unobserved heterogeneity

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Seifert, Stefan ; Hüttel, Silke
• Ereignis: Veröffentlichung
• (wer): Humboldt-Universität zu Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets - Efficiency and Regulation"
• (wo): Berlin
• (wann): 2020

Weitere Informationen

• DOI: doi:10.18452/21172
• Handle: http://hdl.handle.net/10419/227604
• URN: urn:nbn:de:kobv:11-110-18452/21904-3
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ