A model for the valuation of farmland in Spain: The case for the use of multivariate analysis

Abstract

The main task when valuing land is to identify the variables affecting its value. This is critical when a large number of variables is involved. Furthermore, collinearity and other econometric disturbances frequently occur in this type of research. Against this background, and in an effort to surmount these difficulties, this paper proposes and then tests some statistical techniques based on multivariate analysis. Multiple correspondence analysis helps to ensure rigour, simplicity and accuracy in the process of identifying the variables involved in the valuation of farmland. Finally, once the relevant variables have been identified, a model for the valuation of farmland plots is then specified.

Citation

Garcia, T. and Grande, I. (2003), "A model for the valuation of farmland in Spain: The case for the use of multivariate analysis", Journal of Property Investment & Finance, Vol. 21 No. 2, pp. 136-153. https://doi.org/10.1108/14635780310469111