THE PRICE FOR FOREST LAND ON COMBINED FOREST ESTATES

Prices for forest estates, which also include agricultural land, a res idence and outbuildings, were analysed using a hedonic price model. Bo th productive and consumptive uses of the combined estate were conside red. The statistical analysis was based on 198 sales in Sweden during 1992. The independent variables describe both physical characteristics and location. To allow straightforward interpretation of the coeffici ents, a linear specification with quadratic and interaction terms were chosen. The implicit price for forest land on combined forest estates was a positive function of population density, the percentage of prod uctive forest land compared with the total forest area, site index, an d standing volume per hectare of productive forest land. Forest land p rices had negative relationships with the area of agricultural land, s uggesting negative economies of scope between agricultural and forest land. The estimations suggested economies of scale in agriculture and not in forestry.