Ahrendsen, Bruce L.; Bierlen, Ralph W.; Langemeier, Larry N. - Agricultural and Applied Economics Association - AAEA - 1999
Theoretically, leasing and debt are thought to be substitutes. This assumes that a lease payment, which is a fixed obligation like a loan, displaces debt and reduces debt capacity, i.e., if firms have optimal debt to equity ratios, then, to the extent that it represents "off-balance-sheet"...