Total outstanding bank loans, too, have been falling at an annual clip of more than 5%, and as equity markets become substitute sources of capital, volatility and a new form of fanciful valuation have been visited on Japan.
Others have followed, including Munich Re and a tiny U.S. company called XL Re. "The role of reinsurance as a substitute for capital is not well understood," says Kielholz.
Maintenance of institutions/dispensaries could serve as a substitute for capital construction.
The coefficients for Loan Loss Reserves/Loans show that loan loss reserves act as a substitute for capital issuances: banks with higher LLR are less likely to issue hybrid capital and core capital, whereas it does not affect the probability of issuing debt.
A key contribution of the paper is to discuss the opportunities offered by more active distribution system operation as a substitute for capital investment and its regulatory and policy implications.
According to Mr Summers's extrapolations, in ten years the number could be one in seven.This is one indication, Mr Summers says, that technical change is increasingly taking the form of "capital that effectively substitutes for labour".
By providing a combination of capital and liquidity, this facility will effectively substitute public for private balance sheet capacity, in a period of sharp deleveraging and risk aversion in which such capacity appears very short.
Should such tactics--essentially endorsed by New York officials helping with project promotion--pass muster, they invite an absurd process: any developer might save hundreds of millions of dollars, substituting cheaper capital for existing capital, claiming it creates jobs because it's tied to a project with existing, committed investment.
Because big exploration, extraction and infrastructure investments required pots of capital, long-term contracts became an industry norm.Today oil is generally no substitute for gas.
Production of capital goods collapsed.
