Journal Article

Determinants of Ditch Company Share Prices in the South Platte River Basin

D. Jay Goodman and Charles W. Howe

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 3, pages 946-951
Published in print August 1997 | ISSN: 0002-9092
Published online August 1997 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244434
Determinants of Ditch Company Share Prices in the South Platte River Basin

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Ditch companies were formed historically to distribute irrigation water. A portfolio of water rights would be acquired and the resultant water distributed proportionately among the members. Active markets for these shares developed because of their relative homogeneity and ease of transfer. This study identifies the factors that determine share prices, by regressing price on supply- and demand-side variables: characteristics of the underlying water rights, anticipated transfer losses, general factors affecting urban demand, and effects unique to each purchasing city. The major factors are found to be seniority of the underlying water rights, average yields, and transfer losses.

Keywords: ditch company shares; water markets; water rights; Q150

Journal Article.  0 words. 

Subjects: Agricultural Economics

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