Journal of Forest Economics > Vol 14 > Issue 1

Influence of purchaser perceptions and intentions on price for forest land parcels: A hedonic pricing approach

Stephanie A. Snyder, , stephaniesnyder@fs.fed.us Michael A. Kilgore, , mkilgore@umn.edu Rachel Hudson, , rachelhudson@fs.fed.us Jacob Donnay, , jdonnay@pinchot.org
 
Suggested Citation
Stephanie A. Snyder, Michael A. Kilgore, Rachel Hudson and Jacob Donnay (2008), "Influence of purchaser perceptions and intentions on price for forest land parcels: A hedonic pricing approach", Journal of Forest Economics: Vol. 14: No. 1, pp 47-72. http://dx.doi.org/10.1016/j.jfe.2007.04.002

Published: 14 Jan 2008
© 0 2008 Stephanie A. Snyder, Michael A. Kilgore, Rachel Hudson, Jacob Donnay
 
Subjects
 
Keywords
JEL Codes:Q23Q25C51
Forest land pricesForest marketsHedonic analysisForest financePrice function
 

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In this article:
Introduction
Literature review
Data
Model specification
Model variables
Buyer intentions and perceptions
Transactional characteristics
In situ variables
Locational variables
Results
Buyer intentions and perceptions
Transactional characteristics
In situ variables
Locational variables
Summary and implications

Abstract

A hedonic model was developed to analyze the market for undeveloped forest land in Minnesota. Variables describing in situ conditions, locational characteristics, buyer perceptions and intentions, and transactional terms were tested for their influence on sale price. The independent variables explained 67% of the per hectare sale price variation. Water frontage, road access and density, absentee ownership, future intentions, and financing arrangements had large, positive influences on price. Lack of a real-estate agent and agricultural land in the vicinity of the parcel had negative influences. A parcel's merchantable timber volume was not a significant predictor of price.

DOI:10.1016/j.jfe.2007.04.002