סמינר במימון חשבונאות

Adriano A. Rampini, Duke University

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, otherwise dominated assets and buy used assets. More
durable assets are more likely to be rented. Economies with weak legal enforcement invest more in less durable assets and are net importers of used assets.