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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
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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
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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
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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
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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
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Financing Cities
Inman, Robert - 2005
The macro-economic and micro-economic evidences makes a persuasive case for cities as important centers for productive efficiency, innnovation, and economic growth. For cities to achieve their full economic potential, however, complementary public services are required. This paper reviews the...
Persistent link: https://www.econbiz.de/10012467482
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The Effect of Credit Market Competition on Lending Relationships
Petersen, Mitchell A. - 1994
the value of lending relationships. Creditors are more likely to finance credit constrained firms when credit markets are …
Persistent link: https://www.econbiz.de/10012473983
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Equilibrium Corporate Finance and Intermediation
Bisin, Alberto - 2014
Furthermore, equilibria may display specialization on the part of identical firms and, when equilibria are constrained inefficient, may exhibit excessive aggregate risk. Financial decisions of the corporate sector are determined at equilibrium and depend not only on the nature of financial...
Persistent link: https://www.econbiz.de/10012458322
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Volatility in International Financial Market Issuance : The Role of the Financial Center
Cipriani, Marco - 2006
We study the pattern of volatility of gross issuance in international capital markets since 1980. We find several short-lived episodes of high volatility. Over the long run, however, volatility has declined, suggesting that international financial integration has not made financial markets more...
Persistent link: https://www.econbiz.de/10012466075
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How are Stock Prices Affected by the Location of Trade?
Froot, Kenneth A. - 1998
We examine pairs of large, Siamese twin' companies whose stocks are traded around the world but have different trading and ownership habitats. Twins pool their cashflows so, with integrated markets, twin stocks should move together. In contrast, the relative prices of twin stocks appear...
Persistent link: https://www.econbiz.de/10012472237