THEORETICAL APPROACHES TO DEVELOPMENT OF A MODEL OF THE MARKET OF PROPERTY RIGHTS ON AGRICULTURAL LANDS

The article is a continuation of a series of previously published works, in which the author’s methodological approach to the study of the agricultural land market is proposed [1–4]. The land ownership market for agricultural land is an institution for the transaction and specification of full and limited property rights. In the formation of an aggregate market model, significant non-price determinants of supply and demand characteristic for the market of full and limited property rights are considered: institutional norms and rules; land quality; income buyers; the amount of the future rent; tax rates; the magnitude of the transformational and transactional costs; risks; the number of market participants; factors of expectation and surprise. In addition to these non-price determinants, the demand model takes into account opportunity costs and costs; future discounted value. Taking into account the fact that the market functioning mechanism is a combination of market and institutional elements, the endogenous and exogenous variables in the structure of non-price determinants of supply and demand are distinguished in the market model. The significance of endogenous variables is largely due to the action of the market mechanism, the individual choice of the market model, and reflects the behavioral aspects of market agents. These are, first and foremost, transformational and opportunity costs, transaction costs of contracting, opportunism, and the costs of choosing an alternative disposition of ownership. Changes in exogenous variables are due to the institutional mechanism of market regulation. Exogenous variables, on the one hand, include institutional regulators: institutional norms and rules, institutional sanctions and restrictions, tax rates, transaction costs of specification of property rights, tax rate and interest rate, on the other hand natural and climatic risks.The paper presents the results of monitoring the functioning of local markets, confirming the proposed hypothesis of structural market dichotomy, market model, supply and demand functions, significance of exogenous and endogenous variables in the structure of non-price determinants of supply and demand.

institutional approach, economic theory of property rights, agricultural property rights market, market model, supply and demand function, exogenous and endogenous variables, institutional constraints.

Oganesyan L. O., Fedyunina E. N., Vorobev A. V. Theoretical approaches to development of a model of the market of property rights on agricultural lands. Business. Education. Law, 2019, no. 3, pp. 156–161. DOI: 10.25683/VOLBI.2019.48.353.