LAND PRICES, LAND RENTS, AND TECHNOLOGICAL-CHANGE - EVIDENCE FROM PAKISTAN

The intertemporal behavior of land prices and land rents in two produc tion environments of Pakistan is investigated. Empirical analyses indi cate that: (a) agricultural technology adoption has had a strong posit ive impact on real land rents over the past 30 years in both irrigated and rainfed areas; (b) capitalization of rents into land prices has a ccounted for approximately 70% of observed increases in land prices du ring this period; (c) expected capital gains have been an important ad ditional factor driving up land prices; and (d) neither expected infla tion nor inflows of remittance income from abroad have had a significa nt effect on land prices.