The determinants of forest land prices: an empirical analysis

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