Abstract
Input parameters, ie factors defining the market price of agricultural‐purpose land, are interrelated very often by means of non‐linear ties. Strength of these ties is rather different and this limits usefulness of information in the research process of land market prices. Influence of input parameter changes to the input parameters in case when there are rather substantial changes may be determined in someone direction with a sufficient precision, whereas in other directions with comparatively small changes of input parameters this influence is difficult to be separated from the “noise” background. Taking into account the above‐listed circumstances, the concept of economical‐mathematical model of land market should be as follows: there is carried out re‐parameterisation of the process by means of introduction of new parameters in such a way that the new parameters are not interrelated, and the full process is evaluated at the minimal number of these parameters. These requirements are met by the main components of the input parameters. Then normalisation of the main components is carried out and dependencies on new parameters are determined. It is easier to interpret the dependencies obtained having reduced the number of input parameters and the higher the non‐linearity of interrelations of primary land market data, the greater effect of normalisation of input-parameter components. The results are compared with the valuations of experts.
Highlights
Since passing the Land Laws of the Republic of Lithuania, the land market has been legalised and a system of its legal relations has been created
Taking into account the above-listed circumstances, the concept of economical-mathematical model of land market should be as follows: there is carried out reparameterisation of the process by means of introduction of new parameters in such a way that the new parameters are not interrelated, and the full process is evaluated at the minimal number of these parameters
This paper addresses a new way of calculation of different types of land rent as well as its additive value seeking to set the price of agricultural land
Summary
Since passing the Land Laws of the Republic of Lithuania, the land market has been legalised and a system of its legal relations has been created. Taking into account the above-listed circumstances, the concept of economical-mathematical model of land market should be as follows: there is carried out reparameterisation of the process by means of introduction of new parameters in such a way that the new parameters are not interrelated, and the full process is evaluated at the minimal number of these parameters. These requirements are met by the main components of the input parameters. The higher the non-linearity of interrelations of primary land market data, the greater the effect of normalisation of input-parameter components
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