A representative market model of farmland bid prices
1982
Pederson, G.D.
Extract: A land bid-price model is formulated which integrates asset pricing models from prior studies to illustrate the singular and joint effects of ordinary and capital gains taxes, growth of returns, diseconomies of size, and risk behavior on farmland prices. An application of the model to primary data from cash grain farms illustrates that the ceteris paribus effect of increased marginal tax rates on a perpetual, growing income stream is to increase its present value. Larger farms in higher marginal tax brackets are shown to have a competitive advantage over smaller, lower tax bracket farms.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by National Agricultural Library