This paper analyses determinants of agricultural land prices in Sweden with a particular focus on location-specific factors. An asset-pricing model is used to decompose agricultural land prices into expected returns from land in its current agricultural use and expected returns from its potential use. The model is estimated in a cross regional context where explanatory factors relate to regional variations in land productivity, agricultural support payments and urbanising influences. Results indicate that both agricultural and non-agricultural factors are influential determinants to the price of agricultural land. Estimating marginal effects across the distribution of the dependent variable, non-agricultural factors are shown to be more important in regions that have high agricultural land prices, whereas, income support to farmers in the form of the decoupled single farm payment is shown to be most influential in regions with low agricultural land prices.

Dieses Papier analysiert Determinanten von agrarwirtschaftlichen Landpreisen mit einem besonderen Fokus auf standort-spezifischen Faktoren. Ein asset-pricing Modell wird verwendet um agrarwirtschaftliche Preise in erwartete Erträge von der tatsächlichen Nutzung und der potenziellen Nutzung zu zerlegen. Das Modell wird im inter-regionalen Kontext geschätzt mit erklärenden Faktoren hinsichtlich der regionalen Variationen von agrarwirtschaftlicher Landproduktivität, Subventionen und städtischen Regionen in Beziehung gesetzt werden. Die Resultate zeigen dass sowohl agrarwirtschaftliche wie auch nicht-agrarwirtschaftliche Faktoren entscheidende Determinanten fuer den Preis sind. Anhand der marginalen Effekten zeigt sich dass agrarwirtschaftliche Faktoren in Gemeinden mit hohen Preisen entscheidend sind, wogegen in Gemeinden mit niedrigen Preisen agrarwirtschaftliche Subventionen der wichtigste Einflussfaktor ist.

Natural amenities play an important role in explaining intra-regional economic growth, because they increase the competition between places and the relative demand for housing. This paper shows that these relationships are strongly location-specific, such that the magnitude and the direction, of value assessments vary across the urban surface. The analysis in this study addresses spatial heterogeneity in the valuations of preserved open space amenities using Swedish house price data. The results show that marginal valuations of open space amenities are high in locations that are characterised by high population and housing densities and low or insignificant in areas where undeveloped lands are abundant, thus, supporting the hypothesis that a greater competition for those, locational attributes that are in high demand, yet locally scarce, results in higher marginal prices.

This paper estimates a spatial hedonic model to examine the influence of urban and natural amenities on second home prices in south Sweden, incorporating local and regional heterogeneity. With the results obtained in this paper, several important relationships between amenities and second home prices are revealed and price formation in this particular study region is indicated to be strongly related to place-specific factors, regional context and amenities. Key findings show that natural amenities have a significant influence on pricing of second homes when located in regions classified as rural, whereas access to an attractive local house market is shown to be more important for prices of urban second homes.