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.
KEYWORDS:
land prices; post-Keynesian; Brazilian economy
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Source: Prepared by the authors, from data published by FGVDados. Note: Values in Brazilian Reais adjusted for December 2010 using the IGP-DI price index, and then converted into US Dollars using the same month's average exchange rate
Source: Prepared based on data from the Central Bank, BM&F BOVESPA and FGV. Note: Values in Brazilian Reais inflation-adjusted for December 2010, based on the IGP-DI index, and converted into US Dollars based on the same month's exchange rates
Prepared based on data from the Central Bank of Brazil, BM&F BOVESPA and FGV