The paper presents a historical and quantitative analysis of agricultural land transactions between Jews (buyers) and Arabs (sellers) in Palestine at the beginning of the century. Based on data relating to 104 plots (drawn from the archives of the Jewish settlement associations and organizations) and using the hedonic prices approach, it is found that site, relative location, and period of sale explain two-thirds of the variance in price. In addition, the nature of ownership, location in proximity to lands under Jewish ownership, and geopolitical region have substantial effects as well. The last factor is particularly interesting as it relates to nationalistic considerations of land redemption and preparation of a base for a national homeland.
Bibliographical noteFunding Information:
* We thank Jacob Metzer, Yosseph Shilhav, Avi Weiss, and Adrian Ziderman for their helpful comments on an early draft of this paper. We are also indebted to the editor and two anonymous referees for their comments. Financial support from the Schnitzer FOUB- dation for Research on the Israeli Economy and Society is gratefully acknowledged.