TY  - JOUR
AU  - Benmelech,Efraim
AU  - Bergman,Nittai K.
TI  - Vintage Capital and Creditor Protection
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15735
PY  - 2010
Y2  - February 2010
UR  - http://www.nber.org/papers/w15735
L1  - http://www.nber.org/papers/w15735.pdf
N1  - Author contact info:
Efraim Benmelech
Harvard University
Department of Economics
Littauer 233
Cambridge, MA 02138
Tel: 617/496-4787
Fax: 617/495-8570
E-Mail: effi_benmelech@harvard.edu

Nittai Bergman
MIT Sloan School of Management
100 Main Street, E62-632
Cambridge, MA 02142
Tel: 617/253-2933
Fax: 617/258-6855
E-Mail: nbergman@mit.edu
AB  - We provide novel evidence linking the level of creditor protection provided by law to the degree of usage of technologically older, vintage capital in the airline industry. Using a panel of aircraft-level data around the world, we find that better creditor rights are associated with both aircraft of a younger vintage and newer technology as well as firms with larger aircraft fleets. We propose that by mitigating financial shortfalls, enhanced legal protection of creditors facilitates the ability of firms to make large capital investments, adapt advanced technologies and foster productivity.
ER  -