Prices Formation for Agricultural Land Plots in the Central Economic Region of the Central Federal District of Russia

Abstract

The method for identifying patterns in the formation of market prices for agricultural lands based on the econometric multiple regression model was tested on the example of the districts of the Central economic region in the Central Federal District. The paper determines the dependence of the land market activity and the price of land plots on their size and location in the regions of the Central Economic Region, bordering and not bordering with the Moscow Region. The scholars constructed models of specific market price formation for agricultural land plots in various regions of the Central economic region, taking their geographical location into account. The difference in prices for agricultural land between regions derives from the differences in socio-demographic factors, proximity to Moscow and the Moscow Region (as well as regional centers), and plot sizes. Transactions in the administrative areas of the regions adjacent to the Moscow Region are marked with a smaller average size of land plots and a higher unit market price. The proposed method can be used for analyzing market activity in different segments of the agricultural land market, forecasting market prices for agricultural land in the regions of the Federal Districts (with consideration for the characteristics of economic regions).