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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Bibliographic Details

Published in:	Journal of Political Economy Vol. 119; no. 2; pp. 325 - 378
Main Author:	Gavazza, Alessandro
Format:	Article
Published:	University of Chicago Press April 2011
Subjects:	Aircraft leasing & renting Resource allocation > Mathematical models Mathematical models of capital
Online Access:	View this record in EBSCOhost