the same inputs (including capital) thus experience lower costs, which boosts investment, output, and profits, reflecting …

This paper studies the effect of durability on the financing of durable assets. We show that more durable assets … the price of an asset and hence the overall financing need more than its collateral value. This insight has implications … dominated technologies. More durable assets are more likely to be rented given their larger financing need. Legal enforcement …

to bypass attractive investment opportunities, with 86% of constrained U.S. CFOs saying their investment in attractive … their planned investment. Our results also hold in Europe and Asia, and in many cases are stronger in those economies …