IDEAS home Printed from https://ideas.repec.org/a/kap/jrefec/v4y1991i3p283-96.html
   My bibliography  Save this article

A Description of Farmland Investor Expectations

Author

Listed:
  • Tegene, Abebayehu
  • Kuchler, Frederick R

Abstract

We consider how best to characterize agricultural real estate market participants' expectation formation mechanism. The expectation formation mechanism links current agricultural policies to asset prices and tells us how current policies change expectations for future transfers. We examine behavior of real estate prices and returns using the present value model. We derive estimable equations incorporating two rival expectation formation mechanisms: rational and adaptive expectations. Assuming rational expectations, the present value model yields parameter estimates that imply the model should be rejected. Instead of rejecting the present value model while maintaining the rational expectation hypothesis, we let the data reveal which expectations hypothesis best fits this data. When we assume the rival hypothesis, the model yields parameter estimates that conform to adaptive expectation. Copyright 1991 by Kluwer Academic Publishers

Suggested Citation

  • Tegene, Abebayehu & Kuchler, Frederick R, 1991. "A Description of Farmland Investor Expectations," The Journal of Real Estate Finance and Economics, Springer, vol. 4(3), pages 283-296, September.
    • Handle: RePEc:kap:jrefec:v:4:y:1991:i:3:p:283-96
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miranda, J. & Borner, J. & Kalkuhl, M. & Soares-Filho, B., 2018. "Land speculation and conservation policy leakage in Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277285, International Association of Agricultural Economists.
    2. Fiechter, Chad & Kuethe, Todd, 2021. "Agricultural Lenders and Farmland Appraisers Disagreement on Farmland Value Expectations," 2021 Agricultural and Rural Finance Markets in Transition (Virtual Meeting), October 6-7, 2021 316031, Regional Research Committee NC-1177 (formerly NC-1014): Agricultural and Rural Finance Markets in Transition.
    3. Fiechter, Chad & Kuethe, Todd & Zhang, Wendong, 2023. "Information Rigidities and Farmland Value Expectations," ISU General Staff Papers 202306131414240000, Iowa State University, Department of Economics.
    4. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.
    5. Claassen, Roger & Tegene, Abebayehu, 1999. "Agricultural Land Use Choice: A Discrete Choice Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), pages 1-11, April.
    6. Fiechter, Chad M. & Kuethe, Todd H. & Zhang, Wendong, 2022. "Information Rigidities in Farmland Value Expectations," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322070, Agricultural and Applied Economics Association.
    7. Fiechter, Chad M., 2023. "Farmland Value Expectations and Learning," 2023 Annual Meeting, July 23-25, Washington D.C. 335505, Agricultural and Applied Economics Association.
    8. Tom Engsted, 1998. "Do farmland prices reflect rationally expected future rents?," Applied Economics Letters, Taylor & Francis Journals, vol. 5(2), pages 75-79.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jrefec:v:4:y:1991:i:3:p:283-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.