✦ LIBER ✦
Capital structure of real estate assets: Theory and empirical evidence
✍ Scribed by Raimbourg, P. H.
- Publisher
- John Wiley and Sons
- Year
- 1987
- Tongue
- English
- Weight
- 484 KB
- Volume
- 3
- Category
- Article
- ISSN
- 8755-0024
No coin nor oath required. For personal study only.
✦ Synopsis
This paper presents a model which intends to explain the capital structure of real estate assets. The model is cast in classical portfolio choice framework, but special attention is paid to the liquidity constraint. The test of this model on two assets with different capital structures (new housing and old housing in France) revealed the importance of return indicators as well as liquidity constraint in the household's financing decisions.