Abstract
Pricing models try to explain how assets are priced in market equilibrium. Such models are based on theoretical reasoning and empirically observed regularities. This chapter uses a general pricing framework to motivate different pricing models that are used in practice. The presentation focusses in particular on the different variants of single- and multi-factor models. Emphasis is placed on the economic intuition of the models and their usefulness for empirical applications. With respect to applications, the chapter gives a detailed discussion of studies that have used such models to understand and compare the return rates of REITs, direct real estate, and other financial securities.
Original language | English |
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Title of host publication | Routledge Companion to Real Estate Investment |
Editors | Bryan D. MacGregor, Rainer Schulz, Richard K. Green |
Place of Publication | London and New York |
Publisher | Routledge |
Chapter | 11 |
Pages | 215-231 |
Number of pages | 17 |
ISBN (Print) | 9781138020788 |
Publication status | Published - 27 Nov 2018 |