Rental payment

Updated: Aug 20, 2021

A payment for the use of hired equipment. This may be productive equipment, such as cranes or scaffolding, or consumer durables. Such payments are in the nature of quasi-rents: in the long run equipment will only be replaced when it is worn out if the rental payments are sufficient to cover interest and amortization.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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