Abstract: . . .  Journal of Economics 110, 379-406. Stulz, Rene M., and Herb Johnson, 1985, An analysis of secured debt, Journal of Financial Economics 14, 501-521. Waldman, Michael, 1997, Eliminating the market for secondhand goods: An alter- native explanation for leasing, Journal of Law and Economics 40, 6192. 33 Page 34 Wolfson, Mark A., 1985, Tax, inventive, and risk-sharing issues in the allocation of property rights: The generalized lease-or-buy problem, Journal of Business 58, 159-171. 34 Page 35 Table 1: . . .
. . .  Graham, John R., Michael L. Lemmon, and James S. Schallheim, 1998, Debt, leases, taxes, and the endogeneity of corporate tax status, Journal of Finance 53, 131- 162. 31 Page 32 Hart, Oliver, and John Moore, 1994, A theory of debt based on the inalienability of human capital, Quarterly Journal of Economics 109, 841-879. Hendel, Igal, and Alessandro Lizzeri, 1999, Interfering with secondary markets, RAND Journal of Economics 30, 1-21. Hendel, Igal, and Alessandro Lizzeri, 2002, The role of leasing . . .
. . .  leasing Leasing, Ability to Repossess, and Debt Capacity Page 1 Leasing, Ability to Repossess, and Debt Capacity *† Andrea L. Eisfeldt Northwestern University Adriano A. Rampini Northwestern University First Version: June 2005 This Version: September 2005 Abstract This paper studies the role of leasing of productive assets. When capital . . .
. . .  on operating leases) relative to total payments for capital services (sum of rental payments, interest rate times total assets, and depreciation) across asset deciles for total capital (solid), buildings and other structures (dashed), and machinery and equipment (dotted). We use the 1992 Census of Manufactures micro data. See Table 4 for a detailed description of the data construction. 1 2 3 4 5 6 7 8 9 10 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Asset Deciles Fraction Total Rental Payments as Percent . . .
. . .  3 4 0 0.5 1 Internal Funds Investment 1 2 3 4 0 50 100 Internal Funds Leased Capital (%) 1 2 3 4 0 50 100 Internal Funds Optimal Collateralization (%) 1 2 3 4 -0.4 -0.2 0 0.2 Internal Funds Explicit and Implicit Debt 1 2 3 4 0 50 100 Internal Funds Debt to Assets (%) 1 2 3 4 0 0.5 1 Internal Funds Multiplier on Borrowing Constr. Leased Capital Owned Capital Capital Tech. 1 Capital Tech. 2 44 Page 45 Figure 3: Ratio of Rental Payments to Total Payments for Capital Services Across Asset Deciles Fraction . . .
. . .  than for a lender to foreclose on a mortgage. Similarly, it would be interesting to understand the relative prevalence of leasing vs. secured lending in economic history. This might furthermore shed light on the importance of the repossession and debt capacity incentives for leasing vis-`a-vis the tax incentives. 31 See also Brennan, Maksimovic, and Zechner (1988), who show that suppliers with market power may offer trade credit to be able to price discriminate, and Burkart, Ellingsen, and Giannetti . . .
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