Financing Durable Assets

• 成果类型: Article
• 署名作者: Rampini, Adriano A.
• 署名单位: Duke University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20170995
• 发表日期: 2019
• 页码: 664-701
• 关键词: durability; GOODS; MARKET; MODEL; equilibrium; monopoly; RISK; reallocation; constraints; COMPETITION

摘要

This paper studies how the durability of assets affects financing. We show that more durable assets require larger down payments making them harder to finance, because durability affects the price of assets and hence the overall financing need more than their collateral value. Durability affects technology adoption, the choice between new and used capital, and the rent versus buy decision. Constrained firms invest in less durable assets and buy used assets. More durable assets are more likely to be rented. Economies with weak legal enforcement invest more in less durable, otherwise dominated assets and are net importers of used assets.