ESTIMATING THE MARKET VALUE OF FARM TRACTORS IN CHILE: AN ECONOMETRIC APPROACH

Abstract

The aim of this study was to determine the main factors influencing the market price of agricultural tractors in Chile. A linear log model is used with data collected from ChileAutos, which is a website for vehicle sales, including 156 offers and 20 brands of new and used tractors. The results suggest that tractor price depends negatively on tractor age, increases at decreasing rates with tractor power and depends significantly on the manufacturer’s brand.