The hedonic model of the land for agricultural purposes market value

Abstract

© 2019, Research Trend. All rights reserved. The authors identified and evaluated the key hedonic factors of agricultural land in the Arsk municipal district of the Republic of Tatarstan of the Russian Federation market value. The authors studied the composition of hedonic characteristics included in the specification of the model, taking into account the characteristics of the terms of the transaction. In order to identify the observed factors determining the value of land plots, a linear specification of the regression hedonic model of market value according to the data on 35 land plots in the Arsk municipal district in 2019 is constructed. The empirical estimates of the specifications presented in the article confirmed the hypothesis of the relationship between the market value of the land plot with its area and the availability of access roads with hard surface. The relationship of the land market value with the distance to the city, the population in the locality in which the land is located, the configuration of the site in the linear specification of the regression hedonic model was not confirmed. The quality of the results was tested using the coefficient of determination, Fisher test and Student test, the results of the official monitoring of prices for agricultural land in the municipal districts of the Republic of Tatarstan. The results of empirical estimates confirmed the feasibility of this approach practical use to the assessment of land market value.