Interest-Rate Regimes, Credit Distortion, and Capital Misallocation: Evidence from the Offshore Drilling Rig Market, 2005–2025
This paper provides conditional corroboration for the Austrian business-cycle hypothesis that artificially low interest rates distort capital allocation in the offshore drilling rig market, evidenced by significantly higher capital expenditure during the 2010–2014 zero-rate period compared to the 2022–2025 tightening era, while explicitly acknowledging limitations in establishing definitive causal proof.