The determinants of forest land prices:: an empirical analysis

In this paper, we estimate a forest land price model using micro data, where the equilibrium price is interpretable as the outcome of a trading game between the buyer and seller. A novelty of the empirical analysis is the recognition that the forest land price, which has been agreed upon by the buyer and seller, may depend on variables characterizing the buyer's and seller's preferences and choice sets. The results imply that forest land prices are not only determined by land related variables (e.g., the land size, timber volume, and site productivity), they also depend significantly on buyer and seller characteristics.