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  "subfield": "corporate_finance",
  "subfield_secondary": "financial_intermediation_banking",
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   "estimand": "Association between a model's share of captive (manufacturer) financing and its resale price depreciation, LTVs and production quantities; also the effect of a rise in captive share after an acquisition",
   "strategy": "Cross-sectional regressions of model-level depreciation on captive share. Depreciation is decomposed into new-price versus productivity-driven components to separate the commitment and information-asymmetry hypotheses. A natural experiment uses Volvo's 2007 acquisition of an Ingersoll Rand unit. Further tests use within-manufacturer regressions of quantities and time-series variation in loan-officer collateral tightening.",
   "key_assumptions": [
    "Information asymmetry about quality would show up in productivity-driven (cross-sectional age) depreciation rather than in new-price depreciation",
    "The acquisition shifted captive share for reasons unrelated to the machines' ex-ante quality",
    "Used machine prices measured at auction reflect market resale values"
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    "ex-ante machine quality / signaling alternative",
    "market power confound",
    "bank credit pull-back as an alternative explanation for machine choice"
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   "convention_notes": "Table notes describe the sample, the unit of analysis and how depreciation rates are estimated (model-level log price on log age). Variable definitions such as the down payment ratio are given in the notes. Excerpts are truncated, so the standard-error treatment is not visible.",
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   {
    "claim": "Manufacturer-financed shares of new durable investment are large across equipment industries",
    "evidence_type": "figure",
    "evidence_ref": "Figure 1"
   },
   {
    "claim": "Models with more captive financing depreciate less in resale markets",
    "evidence_type": "table",
    "evidence_ref": "Table I; Figure 2"
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   {
    "claim": "Captive finance is unrelated to productivity-driven depreciation, undermining the quality-signaling view",
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    "evidence_ref": "Table II"
   },
   {
    "claim": "Resale performance of Ingersoll Rand machines improved after the Volvo acquisition raised captive share",
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    "evidence_ref": "Table IV; Figure 4"
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   {
    "claim": "Equipment types with a history of captive backing show lower future production within a manufacturer",
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    "evidence_ref": "Table V"
   },
   {
    "claim": "Captive-backed models carry higher LTVs, even when financed by banks",
    "evidence_type": "table",
    "evidence_ref": "Table VI"
   },
   {
    "claim": "Bank-financed buyers shift toward captive-backed models when collateral requirements tighten",
    "evidence_type": "table",
    "evidence_ref": "Table VII; Figure 5"
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  "structural_summary": "The paper opens with stylized facts on the scale of manufacturer lending and asks why manufacturers finance their own sales. It proposes a Coase-commitment explanation and contrasts it with an information-asymmetry alternative, then separates the two by decomposing depreciation. A background and hypothesis section precedes a brief data section. A long results section moves from correlations to the alternative-hypothesis test, market power, an acquisition-based natural experiment, quantity effects, and pledgeability spillovers. A short discussion restates the findings and frames captive finance as a costly hedge.",
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   "Coase conjecture",
   "durable goods",
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   "pledgeability",
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   "competing hypotheses"
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  "notes": "No explicit robustness section appears in the excerpts. An internet appendix is mentioned but its contents are not visible. Statistical significance conventions and standard-error treatment are not visible."
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