Price movement in the Brazilian land market (1994-2010): an analysis in the light of post-Keynesian theory

Vol. 36 No. 1 (2016)

Jan-Mar / 2016
Published March 1, 2020
PDF-English
PDF-English

How to Cite

Santos Telles, Tiago, Alex Willhans Antonio Palludeto, and Bastiaan Philip Reydon. 2016. “Price Movement in the Brazilian Land Market (1994-2010): An Analysis in the Light of Post-Keynesian Theory”. Brazilian Journal of Political Economy 36 (1), 109-29. https://doi.org/10.1590/0101-31572016v36n01a07.

Price movement in the Brazilian land market (1994-2010): an analysis in the light of post-Keynesian theory

Tiago Santos Telles
Pesquisador, Instituto Agronômico do Paraná (IAPAR), Londrina, PR – Brasil.
Alex Willhans Antonio Palludeto
Doutorando em Ciências Econômicas, Instituto de Economia, Universidade Estadual de Campinas,
Bastiaan Philip Reydon
Professor Livre Docente, Instituto de Economia, Universidade Estadual de Campinas.
Brazilian Journal of Political Economy, Vol. 36 No. 1 (2016), Jan-Mar / 2016, Pages 109-129

Abstract

The present study aims to evaluate crop, pasture and forest land prices in Brazil, between 1994 and 2010, in the light of Post Keynesian theory. The results provide evidence that land, more than just a simple factor of production, must be conceived of as an economic asset. In fact, the price of rural land is determined not only by the expected profitability deriving from agricultural activities but also by the agents' expectations about its future appreciation and liquidity in an economic environment permeated with uncertainty. In this context, as an object of speculation, land has been particularly important as a store of value.

JEL Classification: E12; G11.


Keywords: land prices, post-Keynesian, Brazilian economy