Premium
Federal Government Leasing: Costs, Incentives, and Effects
Author(s) -
Blose Laurence E.,
Martin John D.
Publication year - 1989
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.00818
Subject(s) - lease , incentive , government (linguistics) , business , finance , federal budget , public economics , economics , microeconomics , linguistics , philosophy , fiscal year
This article examines the lease or borrow decision from the perspective of the United States federal government as the lessee. It argues that there are several sources of friction in the leasing market that will make leasing more costly than buying for the federal government. Nevertheless, the budget process contains powerful incentives for federal government agencies to lease even though leasing is the most costly alternative.