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The Economics of Time-Limited Development Options : The Case of Oil and Gas Leases

Herrnstadt, Evan M. - 2020

Oil and gas leases between mineral owners and extraction firms ubiquitously include royalty and primary term clauses. The royalty denotes the share of revenue that is paid to the mineral owner, and the primary term specifies the date by which the firm must complete a well, lest it lose the...

Persistent link: https://www.econbiz.de/10012481748

Liquidation Values and the Credibility of Financial Contract Renegotiation : Evidence from U.S. Airlines

Benmelech, Efraim - 2008

How do liquidation values affect financial contract renegotiation? While the 'incomplete contracting' theory of financial contracting predicts that liquidation values determine the allocation of bargaining power between creditors and debtors, there is little empirical evidence on financial...

Persistent link: https://www.econbiz.de/10012464587

The Role of Leasing under Adverse Selection

Hendel, Igal - 1998

Leasing contracts specify a rental rate and an option price at which the used good can be bought at the termination of … prices. In contrast, under adverse selection, leasing contracts affect equilibrium allocations in a way that matches observed … behavior in the car market. We show that a social planner can use leasing contracts to improve welfare but they are imperfect …

Persistent link: https://www.econbiz.de/10012472232

Owning, Using and Renting : Some Simple Economics of the "Sharing Economy"

Horton, John J. - 2016

New Internet-based markets enable consumer/owners to rent out their durable goods when not using them. Such markets are modeled to determine ownership, rental rates, quantities, and surplus generated. Both the short run, before consumers can revise their ownership decisions, and the long run, in...

Persistent link: https://www.econbiz.de/10012456645

Measuring The Natural Rate Using Natural Experiments

Bäcker-Peral, Verónica; Hazell, Jonathon; Mian, Atif - National Bureau of Economic Research - 2023

Every month, a fraction of UK property leases are extended for another 90 years or more. We use new data on thousands of these natural experiments from 2003 onwards to estimate the "natural rate of return on capital", \(r_K^\text{*}\), which also represents the long-run dividend-price ratio....

Persistent link: https://www.econbiz.de/10014421185

Using Bid Rotation and Incumbency to Detect Collusion : A Regression Discontinuity Approach

Kawai, Kei; Nakabayashi, Jun; Ortner, Juan M.; … - National Bureau of Economic Research - 2022

Cartels participating in procurement auctions frequently use bid rotation or prioritize incumbents to allocate contracts. However, establishing a link between observed allocation patterns and firm conduct has been difficult: there are cost-based competitive explanations for such patterns. We...

Persistent link: https://www.econbiz.de/10012814400

Living Wages : Protection For or Protection From Low-Wage Workers?

Neumark, David - 2001

Living wage laws, which were introduced in the mid-1990s and have expanded rapidly since then, are typically touted as anti-poverty measures. Yet they frequently restrict coverage to employers with city contracts, and in such cases apply to a small fraction of workers. This apparent...

Persistent link: https://www.econbiz.de/10012470327

The Local Economic and Welfare Consequences of Hydraulic Fracturing

Bartik, Alexander W. - 2017

Exploiting geological variation within shale deposits and timing in the initiation of hydraulic fracturing, this paper finds that allowing fracing leads to sharp increases in oil and gas recovery and improvements in a wide set of economic indicators. At the same time, estimated...

Persistent link: https://www.econbiz.de/10012455620

The Competitive Effects of Online Education

Deming, David J. - 2016

We study the impact of online degree programs on the market for U.S. higher education. Online degree programs increase the competitiveness of local education markets by providing additional options in areas that previously only had a small number of brick-and-mortar schools. We show that local...

Persistent link: https://www.econbiz.de/10012455931

Migrants, Ancestors, and Investments

Burchardi, Konrad B. - 2016

We use 130 years of data on historical migrations to the United States to show a causal effect of the ancestry composition of US counties on foreign direct investment (FDI) sent and received by local firms. To isolate the causal effect of ancestry on FDI, we build a simple reduced-form model of...

Persistent link: https://www.econbiz.de/10012456825