AN ECONOMETRIC MODEL FOR LAND ASSESSMENT IN MEXICO

Abstract

In México, there is a need to formulate reliable assessment methods that provide a greater efficacy in the allotment of values which help to eliminate the deviations caused by mistaken information. A method needs to be formulated to help eliminate time distortions and provide effective help regarding which variables are essential, to determine the value of rustic properties. A study was performed in 55 non-irrigated agricultural farms, located in the best agrarian zone within the influence area of the Development District Rural de Libres, Puebla, México. The effects of the variables that affect the value
of non-irrigated land were identified and quantified, and a methodology that included an econometric model was proposed, which, in addition to quantifying the effects of the variables on the value of non-irrigation agricultural land, fulfills the role of being an appropriate methodology for the development of the assessment practice with equity and subjectivity. The model obtained satisfies the aim of the assessment in the sense of estimating a fair market value, it satisfies the most frequent cases or assessment modalities to obtain the fair market value and to proceed in making decisions.