Premium
Capital Market Segmentation and U.S. Farm Real Estate Pricing
Author(s) -
Shiha Amr N.,
Chavas JeanPaul
Publication year - 1995
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 - 10.2307/1243549
Subject(s) - capital asset pricing model , real estate , economics , financial economics , arbitrage , capitalization rate , equity (law) , arbitrage pricing theory , consumption based capital asset pricing model , business , real estate investment trust , finance , political science , law
In this paper we present and test a segmented capital market equilibrium. We extend the traditional CAPM by explicitly considering barriers to the flow of external equity capital into farm real estate markets. The empirical results provide a plausible explanation as to why the traditional arbitrage‐based pricing models fail to explain equity pricing in farmland markets.