Leasing and Secondary Markets: Theory and Evidence from Commercial Aircraft.

I develop a model of costly capital reallocation to understand how leasing reduces trading frictions. Leased assets trade more frequently and produce more output than owned assets because (1) high-volatility firms are more likely to lease than low-volatility firms and (2) firms shed leased asssets f...

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Publicado en:Journal of Political Economy Vol. 119; no. 2; pp. 325 - 378
Autor principal: Gavazza, Alessandro
Formato: Artículo
Publicado: University of Chicago Press April 2011
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au: Gavazza, Alessandro
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        Aircraft leasing & renting
        Resource allocation -- Mathematical models
        Mathematical models of capital
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        subj:
          Aircraft leasing & renting
          Resource allocation -- Mathematical models
          Mathematical models of capital
      ab: I develop a model of costly capital reallocation to understand how leasing reduces trading frictions. Leased assets trade more frequently and produce more output than owned assets because (1) high-volatility firms are more likely to lease than low-volatility firms and (2) firms shed leased asssets faster than owned assets amid productivity shocks because of lower transaction costs. Commercial aircraft data show that leased aircraft have holding durations 38 percent shorter and fly 6.5 percent more hours than owned aircraft. These differences arise primarily because when profitability declines, carriers keep owned aircraft and return leased aircraft, which lessors redeploy to more productive operators. Reprinted by permission of the publisher.
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    language: English
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