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Another Look at Returns to Agricultural and Nonagricultural Assets
Author(s) -
Bjornson Bruce,
Innes Robert
Publication year - 1992
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242995
Subject(s) - capital asset pricing model , consumption based capital asset pricing model , economics , capital asset , agriculture , asset (computer security) , financial economics , business , monetary economics , econometrics , finance , biology , ecology , computer security , computer science
This paper presents econometric tests of whether mean returns on agricultural assets have been higher or lower than those on comparable‐risk assets in nonagricultural capital markets. The tests are based on alternate maintained hypotheses that the capital asset pricing model (CAPM) or the arbitrage pricing theory (APT) characterize nonagricultural asset returns. Results indicate that mean returns to farmer‐operators have been lower than those to owners of comparable‐risk nonagricultural assets and that mean returns to farmland owners have been higher than those to owners of comparable‐risk nonagricultural assets.