New Economics Papers
on Agricultural Economics
Issue of 2011‒07‒27
23 papers chosen by

  1. Evaluating the Effectiveness of Yield-Raising Strategies in Medieval England: An Econometric Approach By Eric B. Schneider
  2. The Impact of Economic Factors on Food Consumption and Obesity By Rausser, Gordon; Thunström, Linda
  3. Productive inefficiency in patriarchal family farms: evidence from Mali By Goetghebuer, Tatiana
  4. Smallholder Farmers and Collective Action: What Determines the Intensity of Participation? By Fischer, Elisabeth; Qaim, Matin
  5. Political Connections and Investment in Rural Vietnam By Finn Tarp; Thomas Markussen
  6. Yield Effects of Tissue Culture Bananas in Kenya: Accounting for Selection Bias and the Role of Complementary Inputs By Kabunga, Nassul S.; Dubois, Thomas; Qaim, Matin
  7. Greek Agriculture within the Framework of the Common Agricultural Policy: Thirty Years After By Baltas, Nicholas C.
  8. The Dynamics of Service Delivery and Agricultural Development in India - A District-Level Analysis - By Raabe, Katharina
  9. Agri-food exports and the enlarged european union By Alessandro Antimiani; Anna Carbone; Valeria Costantini; Roberto Henke
  10. Does seasonal vulnerability to poverty matter? A case study from the Hadejia-Nguru Wetlands in Nigeria By Chiwaula, Levison; Waibel, Hermann
  11. Productivity effects of land rental markets in Ethiopia : Evidence from a matched tenant-landlord sample By Deininger, Klaus; Ali, Daniel Ayalew; Alemu, Tekie
  12. The Relationship Between Self-Concept, Self-Efficacy, Emotional State, Weight Perception and Food Choice Within Generation Y: Implications for Social Marketers By Preez, Du; Rensburg, Janse Van; Terblanche-Smit, Marlize
  13. The Impact of the Food and Financial Crises on Child Mortality: The case of sub-Saharan Africa By Giovanni Andrea Cornia; Luca Tiberti; Stefano Rosignoli; UNICEF Innocenti Research Centre
  14. Are Foreign Aid and Remittances a Hedge against Food Price Shocks in Developing Countries? By Jean-Louis Combes; Christian Ebeke; Mireille Ntsama Etoundi; Thierry Yogo
  15. Child schooling, child health and rainfall shocks: evidence from rural Vietnam By Thuan Quang Thai; Evangelos M. Falaris
  16. Enhancing governance in fisheries management in southeast Asia towards 2020: issues and perspectives By Viswanathan, K. Kuperan
  17. Nudge to nobesity II: Menu positions influence food orders By Eran Dayan; Maya Bar-Hillel
  18. In tandem for cohesion? Synergies and conflicts between regional and agricultural policies of the European Union By Riccardo Crescenzi; Fabrizio De Filippis; Fabio Pierangeli
  19. Market Evidence of Packer Willingness to Pay for Traceability By Pouliot, Sebastien
  20. Climate risk perception and ex-ante mitigation strategies of rural households in Thailand and Vietnam By Völker, Marc; Tongruksawattana, Songporne; Hardeweg, Bernd; Waibel, Hermann
  21. Direct and Indirect Determinants of Obesity: The Case of Indonesia By Römling, Cornelia; Qaim, Matin
  22. Education spillovers in farm productivity: empirical evidence in rural India By Gille, Véronique
  23. Hedonic Regressions and the Decomposition of a House Price index into Land and Structure Components By de Haan, Jan; Diewert, Erwin; Hendriks, Rens

  1. By: Eric B. Schneider (History Faculty and Nuffield College, University of Oxford, Oxford, OX1 1NF)
    Abstract: This paper employs multiple regression analysis to evaluate the effectiveness of yield-raising techniques available to medieval farm managers (reeves) using a panel dataset of 49 manors held by the Bishop of Winchester from 1349-70. There are three main interesting findings. First, annual weather variation, modelled with climate reconstructions, was highly significant in explaining annual yield variation in wheat, barley, and oat yields, though the weather influenced each grain differently. Second, there is evidence that planting leguminous fodder crops and livestock stocking rates had small or even negative effects on grain yields. Finally, there is indirect evidence that reeves responded to economic incentives in allocating labour inputs such as manuring, weeding, harvesting, and gleaning among their crops, giving them a small ability to adjust their output based on economic incentives. These findings complicate our understanding of the agricultural revolution. The ineffectiveness of short-run yield-raising strategies employed in open field agriculture would support Overton’s traditional argument of the importance of enclosure for the gains in agricultural productivity. However, the whispers of price responsiveness on the manors might suggest that open fields were becoming more efficient, supporting Allen’s argument that the first agricultural revolution was carried out by small farmers on open fields.
    Date: 2011–07–18
  2. By: Rausser, Gordon (University of California); Thunström, Linda (The Swedish Retail Institute (HUI))
    Abstract: This paper contains a review of the emerging literature on the contribution of economic factors to the increased prevalence of food related illnesses and the impact of economic policies designed to promote health (e.g. fat taxes). A few results stand out. Studies show that technological change, resulting in falling relative prices of food, greater access to ready meals and less physical activity in production, is the main driver behind the dramatic increase in obesity over the last few decades. In order to counteract the increase in food related illnesses, food tax reforms would need to be substantial, due to the inelastic demand for food. However, more research is needed on the distributional effects of food tax reforms designed to improve health, over income groups and groups of varying health status, and age groups, to ensure that target groups benefit appropriately from the reforms.
    Keywords: Health; tax reforms; food related illness
    JEL: P36 P46
    Date: 2011–03–01
  3. By: Goetghebuer, Tatiana
    Abstract: In Mali, there exist various farm-cum-family structures, so that agricultural production occurs on plots controlled by different members of the household. In this paper, we want to lay emphasis on the under-researched differentials between collective and individual plots (attended by male or female farmer) in the context of extended family farms using input and output first hand data collected in the south-eastern part of Mali. First, we find that land yields are significantly larger on (male) private plots than on common plots with similar characteristics planted to the same crop in the same year after all appropriate controls have been included. And, second, we bring strong suggestive evidence that a moral hazard-in-team problem exists on the collective fields (yet only with regard to care-intensive crops) that could explain their relatively poor performance. --
    Keywords: Land productivity,family structure,moral-hazard-in-team problem,collective
    JEL: D13 D57 J12 O12 O13 Q12 Q15 R20
    Date: 2011
  4. By: Fischer, Elisabeth; Qaim, Matin
    Abstract: Collective action has become an important strategy for smallholders in developing countries to remain competitive in rapidly changing markets. However, within farmer groups, the commitment of individual members can vary, as the expected net benefits are not the same for all individuals, and opportunities to free-ride exist. Since the benefits of collective action emerge primarily through the exploitation of economies of scale, low participation rates in joint activities may put a serious threat to the success and viability of farmer groups. This article investigates determinants of smallholder participation intensity and free-riding, using the example of banana groups in Kenya. The results suggest that family labor availability and previous benefits that members received through the groups positively influence their intensity of participation in group meetings and collective marketing. Free-riding can mostly be attributed to structural and institutional conditions, such as group size and the timing of payments. More diversified farmers are less likely to sell collectively. Since smallholders are often highly diversified in their agricultural activities, farmer groups should also diversify, focusing on more than a single crop. Further policy implications are discussed. --
    Keywords: collective action,participation intensity,smallholder farmers,Kenya
    Date: 2011
  5. By: Finn Tarp; Thomas Markussen
    Abstract: This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers. agricultural investment decisions. Our main result is that households significantly increase their investment in land improvement as a result of relatives moving into public office. Connections to office holders appear to be important for investment because they strengthen de facto land property rights and improve access to off-farm employment and to informal loans. The findings underline the importance of informal networks for economic behaviour in environments with developing institutions and markets. They also suggest the presence of an untapped potential for economic development: if households without connections could obtain equally strong property rights and accessto credit and insurance as the well-connected households, investment levels would risesubstantially.
    Keywords: political connections, informal networks, land property rights, investment,credit, Vietnam
    Date: 2011
  6. By: Kabunga, Nassul S.; Dubois, Thomas; Qaim, Matin
    Abstract: We analyze yield effects of tissue culture (TC) banana technology in the Kenyan small farm sector, using recent survey data and an endogenous switching regression approach. TC banana plantlets, which are free from pests and diseases, have been introduced in East Africa since the late-1990s. While field experiments show significant yield advantages over traditional banana suckers, a rigorous assessment of impacts in farmers' fields is still outstanding. A comparison of mean yield levels between TC adopters and non-adopters in our sample shows no significant difference. However, we find a negative selection bias, indicating that farmers with lower than average yields are more likely to adopt TC. Controlling for this bias results in a positive and significant TC net yield gain of 7%. We also find that TC technology is more knowledgeintensive and more responsive to irrigation than traditional bananas. Simulations show that improving access to irrigation could lift TC productivity gains to above 20%. The analytical approach developed and applied here may also be useful for the evaluation of other knowledgeintensive package technologies and innovations in perennial crops. --
    Keywords: Biotechnology,adoption,productivity,impact,endogenous switching regression,Kenya
    Date: 2011
  7. By: Baltas, Nicholas C.
    Abstract: Agriculture is a vital element not only in the rural economy but also in the wider national economy of Greece. Greece's agriculture occupies the first place in terms of its share in GDP, population and balance of trade among the old member states of the European Union (EU-15). Specifically, Greece's agriculture contributes in terms of GDP, the active population and its value exports 6,16 and 23 percent respectively against 2,4 and 8 percent at an average level in the EU. The accession of Greece into the European Community in 1981 resulted in the immediate implementation of the Common Agricultural Policy (CAP) and the gradual (within 5 years) removal of tariffs on the trade of agricultural products with other member countries. Consequently, the institutional framework within which Greek agriculture had developed in the post-war period changed radically and the regulating ability of the Greek state was significantly limited (Maraveyias, 1994). The question which we will try to answer in this paper is, to what degree the change in the institutional framework of the development of Greek agriculture, due to the implementation of the CAP1 and the freeing of trade in agricultural products within the Community, affected Greek agriculture. Specifically, after a short review of agricultural policy in Greece before accession and the changes made during the transition period, an attempt is made in this paper to assess quantitatively and qualitatively developments in key indicators of Greek agriculture. Moreover, the agricultural sector's prospects are examined after the 1992 CAP reform for important for our country products, the implementation of the Uruguay Agreement, the Berlin Agreement, enlargement of the EU, the Mid-Term CAP reform and the recent developments in the CAP and its prospects.
    Keywords: Common Agricultural Policy; Greek Agriculture
    Date: 2011
  8. By: Raabe, Katharina
    Abstract: This paper uses district-level data from India for the Census period 1991-2001 to investigate the nexus between agricultural sector development and service delivery in education, health, transportation, and communication. It asks whether local differences in public service provision cause some districts to fare better in terms of agricultural and ultimately rural development than others. In order to control for regional heterogeneities in agro-ecological conditions and consequent heterogeneities in agricultural potential and development, district agricultural sector performance is approximated with the yield level of district-specific commercial and field crops. The evidence from visualization and standard regression techniques shows that district dissimilarities in crop yield and ultimately agricultural development are not attributable to district differences in the endowment with infrastructure facilities. That is, the number of infrastructure facilities does not explain agricultural development. What seems to be more important instead is the quality of rural services. This paper concludes that progress in agricultural and ultimately rural sector performance does not require more infrastructure facilities, but the effective utilization of existing ones. To this end, the supply side of service delivery needs to be investigated in greater detail, especially with respect to the governance challenges of public service provision and the difficulties arising from, for instance, complex administrative structures or manpower, financial, political, and capacity constraints. --
    Keywords: Agricultural development,rural service delivery,India
    JEL: H7 O1 O16 P2 R1
    Date: 2011
  9. By: Alessandro Antimiani; Anna Carbone; Valeria Costantini; Roberto Henke
    Abstract: This paper explores agri-food export dynamics in New Member States (NMS) and Old Member States (OMS) of the European Union during the enlargement process. A quality-oriented survey is conducted by developing an original analytical framework which combines information from trade similarity analysis with elements from the sophistication literature. Country and sector specific features seem to emerge, revealing a more complex picture than that produced by aggregated trade analysis. While for some NMS agri-food exports, patterns converge towards OMS with regard to size, competitiveness and quality improvement process, for other NMS, a low-quality trap seems to prevail.
    Keywords: Agri-food sector, export dynamics, EU enlargement, quality upgrading
    JEL: F14 F15 Q17
    Date: 2011–07
  10. By: Chiwaula, Levison; Waibel, Hermann
    Abstract: Applying research on vulnerability to seasonal data, we assess seasonal vulnerability to poverty using panel data from the Hadejia-Nguru Wetlands in Nigeria involving 260. We find that both observed poverty and vulnerability to poverty vary seasonally and that these variations are related to household livelihood strategies. Basing on our findings policy interventions should aim at increasing crop productivity (both food and cash crops) and returns to crop sales as well as promoting income diversification to off-farm activities. Safety net programs should be implemented only after productivity-enhancing interventions have been implemented. Further research is proposed to particularly assess the influence of seasonal variation on household livelihood choices. --
    Keywords: Vulnerability to poverty,Seasonality,Social protection,Nigeria
    Date: 2011
  11. By: Deininger, Klaus; Ali, Daniel Ayalew; Alemu, Tekie
    Abstract: As countries increasingly strive to transform their economies from agriculture-based into a diversified one, land rental will become of greater importance. It will thus be critical to complement research on the efficiency of specific land rental arrangements -- such as sharecropping -- with an inquiry into the broader productivity impacts of the land rental market. Plot-level data for a matched landlord-tenant sample in an environment where sharecropping dominates allows this paper to explore both issues. The authors find that pure output sharing leads to significantly lower levels of efficiency that can be attenuated by monitoring while the inefficiency disappears if inputs are shared as well. Rentals transfer land to more productive producers but realization of this productivity advantage is prevented by the inefficiency of contractual arrangements, suggesting changes that would prompt adoption of different contractual arrangements could have significant benefits.
    Keywords: Labor Policies,Municipal Housing and Land,Economic Theory&Research,Land and Real Estate Development,Real Estate Development
    Date: 2011–07–01
  12. By: Preez, Du; Rensburg, Janse Van; Terblanche-Smit, Marlize
    Abstract: Social marketers play a pivotal role in influencing consumer's food choices, which ultimately contribute to healthier societies. In 2005, approximately 1.6 billion people worldwide, and 50% of the South African population, were classified as overweight. These numbers are escalating together with health related illnesses. The aim of this study was to investigate the relationship between self-concept, self-efficacy, emotional state, weight perception and food choice within Generation Y, a coveted consumer segment, regarded as trendsetters and early-adopters. An ex post facto research design and a self-administered questionnaire were utilized. The main findings include significant relationships between emotional state and food choice as well as weight perception and self-concept. The significance of this study lies in the expansion of knowledge regarding food choice behaviour of Generation Y and recommendations made to social marketers based on relationships found.
    Keywords: Generation Y; self-efficacy; food choice; weight perception; emotional state; Self-concept
    Date: 2011
  13. By: Giovanni Andrea Cornia; Luca Tiberti; Stefano Rosignoli; UNICEF Innocenti Research Centre
    Abstract: The years 2000-2007 witnessed an average decline in U5MR in sub-Saharan Africa (SSA) faster than that recorded during the prior two decades, including in countries with high HIV prevalence rates due to the spread of preventative and curative measures. Despite their gravity, a comprehensive analysis of the impact of the 2008-2009 crises on child mortality is still lacking, and estimates of the number of additional child deaths caused by the crises in SSA vary enormously.
    Keywords: economic crisis; food shortage; infant mortality;
    JEL: C1
    Date: 2011
  14. By: Jean-Louis Combes (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Christian Ebeke (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Mireille Ntsama Etoundi (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Thierry Yogo (Université de Yaoundé II - Université de Yaoundé II)
    Abstract: This paper measures the effects of food price shocks on both the level of household consumption per capita and the instability of the household consumption per capita growth rate in developing countries. In this vein, the paper explores specifically the role of aid and remittance inflows in the mitigation of the effects of food price shocks in the recipient economies. Using a large sample of developing countries observed over the period 1980 - 2009 and mobilizing dynamic panel data specifications, the econometric results yield three important findings. First, food price shocks significantly affect both the level and the instability of household consumption in the highly vulnerable countries. Second, remittance and aid inflows significantly dampen the effect of food price shocks in the most vulnerable countries. Third, a lower remittance-to-GDP ratio is required to fully absorb the effects of the food price shocks compared to the corresponding aid-to-GDP ratio.
    Keywords: Household consumption;food price shocks;vulnerability;Aid;Remittances
    Date: 2011–07–12
  15. By: Thuan Quang Thai (Max Planck Institute for Demographic Research, Rostock, Germany); Evangelos M. Falaris
    Abstract: We study the effect of early life conditions, proxied by rainfall shocks, on schooling and height in rural Vietnam. Our measure of rainfall shock is defined as deviations from the long-run average. Vietnamese rural dwellers engage in rain-fed crop production, mostly irrigated paddy rice. Sufficient annual rainfall could play an important role in the harvest and thus, the household income. Nutritional deficiencies resulting from the household's income shocks may have negative consequences on health. We find that negative rainfall shocks during gestation delays school entry and slows progress through school. In addition, negative rainfall shocks in the third year of life affects adversely both schooling and height. The effects differ by region in ways that reflect differing constraints on families that are shaped by regional economic heterogeneity. We predict that policies that help rural families smooth income shocks will result in increases in human capital and in substantial cumulative returns in productivity over the life course.
    Keywords: Vietnam, child nutrition, early childhood, school enrolment
    JEL: J1 Z0
    Date: 2011–07
  16. By: Viswanathan, K. Kuperan
    Abstract: This is a keynote address at the ASEAN-SEAFDEC conference on Sustainable Fisheries for Food Security Towards 2020, Fish for the People 2020: Adaptation to a Changing Environment. It addresses theme one of the conference which is Enhancing Governance in Fisheries Management. With the deteriorating state of the fishery resources and the emerging fisheries-related issues during the past decade, there is an urgent need to address concerns on weak governance as the main underlying cause of overfishing. Many social scientists believe that improved governance with strong elements of self-governance, co-management, and community-based management are required for effective management of fisheries resources.
    Keywords: Fisheries Management; Governance; Co-management; Southeast Asia.
    JEL: Q0 Q01 Q22
    Date: 2011–06–14
  17. By: Eran Dayan; Maya Bar-Hillel
    Abstract: "Very small but cumulated decreases in food intake may be sufficient to have significant effects, even erasing obesity over a period of years" (Rozin et al., 2011). In two studies, one a lab study and the other a real-world study, we examine the effect of manipulating the position of different foods on a restaurant menu. Items placed at the beginning or the end of the list of their category options were up to twice as popular as when they were placed in the center of the list. Given this effect, placing healthier menu items at the top or bottom of item lists and less healthy ones in their center (e.g., sugared drinks vs. calorie-free drinks) should result in some increase in favor of healthier food choices.
    Date: 2011–07
  18. By: Riccardo Crescenzi; Fabrizio De Filippis; Fabio Pierangeli
    Abstract: The paper sets out to analyze the allocations of financial resources accruing to the European regions from the Regional, Rural Development and Agricultural policies of the European Union in order to assess their territorial coordination and synergies and their degree of compatibility with the "general" objective of territorial cohesion. Regression analysis is used to evaluate the relationship between allocated funds (dependent variable) and factors of territorial disadvantage (explanatory variables) covering the 20-year period 1994-2013 and approximately 90% of total Community expenditure. The analysis reveals that both coordination and compatibility with territorial cohesion of the various areas of Community policy have not always improved in response to major policy reforms. The territorial ‘vocation’ of overall Community spending is weakly linked to its distribution among different policies, but it crucially depends upon how each policy area defines appropriate allocation mechanisms and interventions, based upon the characteristics of each region and its ‘local’ needs.
    JEL: C24 O18 R11 R58
    Date: 2011–07
  19. By: Pouliot, Sebastien
    Abstract: This article measures the willingness to pay for the traceability of steers. I use data on the price of steers in Quebec and Ontario to identify a demand shifter in a hedonic framework. I estimate error correction models to provide the first market-based econometric estimates of the willingness to pay for traceability. My best assessment is that a premium between C$0.02 and C$0.05 per pound of carcass (between 1.2% and 3.1%) is paid for traceable steers.
    Keywords: beef; cattle; packer; premium; quality; traceability
    JEL: D2 L15 Q18
    Date: 2011–04–17
  20. By: Völker, Marc; Tongruksawattana, Songporne; Hardeweg, Bernd; Waibel, Hermann
    Abstract: A major risk factor for rural areas in emerging market economies, such as Thailand and Vietnam, can be attributed to climate change. Adoption of effective ex-ante mitigation strategies is a function of socio-economic household and location characteristics including, among others, the decision makers' perceptions of risk. This study aims to analyze both the determinants of climate-related risk perception and its influence on the choice of ex-ante mitigation strategies. In the context of the DFG research project Impact of Shocks on the Vulnerability to Poverty: Consequences for Development of Emerging Southeast Asian Economies, data were collected in a panel survey among some 4,400 rural households in 2007 and 2008 in six peripheral provinces in Thailand and Vietnam. Methodologically a three-step regression approach is applied. In the first step households' risk perception is explained. The second step is to assess general adoption of risk mitigation actions. In the third step the likelihood of households taking up particular ex-ante risk management strategies is established. Initial results show that rural households are particularly concerned about climate risk. However, the majority of households do not undertake any activity to mitigate risks ex-ante. The experience of climate shocks increases risk perception while other factors are also identified as significant determinants. For those who adopt preventive measures households in Vietnam particularly pre-adjust for storms while Thai households accommodate especially for drought. Findings are expected to be useful for the development of risk management strategies for rural households when differences in risk perception are taken into account. --
    Date: 2011
  21. By: Römling, Cornelia; Qaim, Matin
    Abstract: Overweight and obesity are becoming serious issues in many developing countries. Since undernutrition is not completely eradicated yet, these countries face a dual burden that obstructs economic development. We analyze the nutrition transition in Indonesia using longitudinal data from the Indonesian Family and Life Survey, covering the period between 1993 and 2007. Obesity has been increasing remarkably across all population groups, including rural and low income strata. Prevalence rates are particularly high for women. We also develop a framework to analyze direct and indirect determinants of body mass index. This differentiation has rarely been made in previous research, but appears useful for policy making purposes. Regression models show that changing food consumption patterns coupled with decreasing physical activity levels during work and leisure time directly contribute to increasing obesity. Education, income, and marital status are significant determinants that influence nutritional status more indirectly. Change regressions underline that there are important path-dependencies. From a policy perspective, nutrition awareness and education campaigns, combined with programs to support leisure time exercise, seem to be most promising to contain the obesity pandemic. Women should be at the center of policy attention. --
    Keywords: Obesity,Overweight,Nutrition Transition,Asia,Indonesia
    JEL: I10 O12
    Date: 2011
  22. By: Gille, Véronique
    Abstract: Empirical evidence of education spillovers in developing countries and rural contexts is scarce and focuses on specific channels. This paper provides evidence of such spillovers in rural India, by evaluating the overall impact of education of neighbors on farm productivity. We use cross-sectional data from the India Human Development Survey of 2005. Spatial econometric tools are used to take into account social distance between neighbors. To be sure that our definition of the neighborhood does not drive our results, we test three different definitions of neighbors. Our results show that education spillovers are substantial: one additional year in the mean level of education of neighbors increases households' farm productivity by 3%. These findings are robust to changes in specification and open the way to further research. In particular, the paper does not explore the channels through which this spillover effect happens. This paper confirms the choice of improving education in developing countries: giving a child education will certainly provide him greater revenues but it may also provide his neighbors greater revenues. It also shows the importance for policy makers of taking into account education spillovers and policies' complementarity when facing political trade-offs. This paper is one of the few to underline that education externalities do not only exist in urban contexts and that education spillovers do not only occur between workers of the manufacturing and service sectors. There are also spillovers in sectors considered as more traditional such as agriculture. --
    Keywords: Education externalities,Rural India,Farm productivity
    JEL: D13 O12 Q12
    Date: 2011
  23. By: de Haan, Jan; Diewert, Erwin; Hendriks, Rens
    Abstract: The paper uses hedonic regression techniques in order to decompose the price of a house into land and structure components using readily available real estate sales data for a Dutch city. In order to get sensible results, it was useful to use a nonlinear regression model using data that covered multiple time periods. It also proved to be necessary to impose some restrictions on the price of structures. The resulting builder’s hedonic regression model was compared with the results for traditional logarithmic hedonic regression models.
    Keywords: House price indexes, land and structure components, time dummy hedonic regressions, Fisher ideal indexes.
    JEL: C2 C23 C43 D12 E31 R21
    Date: 2011–04–05

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