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Questions tagged [capital-structure]

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2answers
31 views

relationship between renting a van and buying a van

I can buy a van and use it to deliver goods. The price of the van is X. Alternatively, I can hire the van, with a monthly price of Y. What does the economics theory tell about the relationship between ...
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1answer
27 views

How are assets distributed by types of organisations? [closed]

How wealth, assets or capital (measured in terms of revenues, assets, equity, etc.) is distributed among the various types of organizations (e.g. State, public companies, private conpanies, ...
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0answers
48 views

Why is United States Gross Capital Formation per capita so far ahead of the big 3 European economies?

So, I was pondering the weakness of the UK economy (I am British) and its lagging productivity performance. I was thinking that capital deployed per worker would be an explanatory variable. ...
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1answer
29 views

Does good geographical location count as land in economics?

For example, the North pole is in the northern part of the earth and is very cold, making it suitable to build a site to study polar bears. Is the cold and northern location of north pole counted as ...
2
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1answer
47 views

How does an UHN individual leverage their wealth? [closed]

How does an UHN individual leverage their wealth? Do they in fact do so, and should for example Bill Gates' 80 billion be understood as 800 - 900 billion dollar if he leverage his wealth 10 x? ...
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1answer
76 views

Is the lack of information on customer behaviour good for banks?

Discussing chapter 18 on Microeconomic Theory Basic Principles and Extensions - Nicholson and Snyder book - regarding Asymmetric information a student raise an interesting point of view regarding the ...
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2answers
121 views

GMM Estimation of a parameter from Intratemporal Euler of capital constraints

I'm trying to estimate $\lambda$ from this intratemporal Euler equation: $\left[ \dfrac{C_t^{-\sigma}}{C_t^{*-\sigma}} \dfrac{P_t}{S_t P_t^*} \right]^{\lambda} \left[ \dfrac{\bar{P_t} Y_t - \Delta (...
4
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1answer
143 views

Can capital still be paid its marginal product in the absence of a homogeneous capital stock?

Thomas Piketty's best-selling book on inequality, "Capital in the Twenty-First Century" has attracted a lot of criticism on the right for its data analysis. Less well-known, however, is the criticism ...
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2answers
344 views

If assets = liabilities + equity, what do we mean by overcapitalization?

Overcapitalization doesn't seem to have a clear-cut definition. For some it seems to deal with the ratio of current output (Y) over optimal output (Y*). A company would then be overcapitalized if Y &...
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2answers
411 views

How do we explain the difference in average leverage between banks and non-financial firms?

I've been reading a little about the capital structure of banks. For example, in this working paper, "Financing as a Supply Chain: The Capital Structure of Banks and Borrowers" by Gornall and ...