Factors influencing german and italian farmland prices – A spatial econometric analysis

A spatial econometric model of German and Italian farmland prices is estimated to identify the determinants of farmland prices. It explicitly takes spatial dependencies among neighbouring areas into account, not only in form of spatially lagged farmland prices (spatial lag model) but also in form of spatially lagged explanatory variables (spatial Durbin model). Results show that both agricultural and non-agricultural factors are important for explaining farmland prices in both countries. Differences seem to be stronger within the member states than between the countries