Abstract
This paper tests how collateral value affects a firm's choice between bank debt and public debt by considering the exogenous variation in the market value of a firm's real estate assets caused by fluctuations in local real estate prices. Using local land supply elasticities as an instrument for local real estate prices, I estimate that a one standard deviation increase in collateral value causes bank debt as a fraction of total debt to increase by 6 percentage points.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
