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Abstract
This study analyzes the behavior of the agricultural land price in the
municipalities of Paraná State over the period 1999-2011. After literature review of the
main studies of this field, the determinants of land price and methodology to be used were
identified. For this purpose, we estimate the empirical model for price of agricultural land
through spatial data panel. The results show that main statistically significant variables
to explain the price of agricultural land in Paraná State are the gross value of agricultural
production, asset valuation, total financing in agriculture, ratio municipal investment-deterincome,
percentage of planted soybeans in the municipality and the incorporation of spatial dependence on land
prices. These variables can explain around 84% of the prices and indicate that the data presented great intrapanel
fit, and the spatial effects would be more intense in the municipality itself and in relation to the whole. The proposed
model, specially, advanced in structural terms, by incorporating data from all 399 municipalities in Paraná.
Empirically, the study advanced by estimating through panel data and considering the influence of spatial effects on
the agricultural land price, highlighting the importance of the location and neighborhood in the price determination.