A time series analysis of farmland price behaviour in Ireland, 1901-1986

Abstract

This paper examines the dynamic link between land prices and a proxy for agricultural returns, conacre rents, in Ireland. The data pertain to the Limerick region and span the period 1901 to 1986. Initial results suggest that rents do determine land prices but that the transmission process is considerably drawn out. Further analysis, however, reveals that the period of entry into the EEC caused considerable instability in the land market in Ireland. Once this instability is allowed for, we find the dynamic link between prices and rents to be quite similar in structure to what researchers have found to be the case elsewhere.