Cite JOURNAL ARTICLE
Ökonomische Analyse von Leasingverträgen
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 1 : pp. 63–80
The paper studies the choice between debt and leasing contracts in a principalagent framework. It can be shown that leasing can only dominate debt finance, if bankruptcy can occur. One surprising result is that leasing will be preferred since it increases the probability of bankruptcy. The analysis also shows that the introduction of buy options can improve the efficiency of a leasing contract.