Yurko, Anna (2008): From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages.
This is the latest version of this item.
Download (697kB) | Preview
Download (696kB) | Preview
This paper studies the relationship between consumer incomes and ages of the durable goods consumed. At the household level, it presents evidence from the Consumer Expenditure Survey of a negative correlation between incomes and ages of the vehicles owned, controlling for the size of the vehicle stock. At the aggregate level, it constructs a dynamic, heterogeneous agents, discrete choice model with multiple vehicle ownership, to study the relationship between the distribution of consumer incomes and the distribution of vehicle vintages. Two versions of the model are solved, one with the restriction of at most one vehicle per agent and one with multiple vehicle ownership. For each version of the model, the parameters are calibrated to match vehicle ownership data for 2001. The moments of the income distribution are then varied to generate predictions for mean and median ages of vehicles and the results from the two versions of the model are compared. While these are mostly similar, some of the differences are quite illuminating.
|Item Type:||MPRA Paper|
|Original Title:||From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages|
|Keywords:||income distribution; motor vehicle s;heterogeneous agents models; vertical differentiation|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth
|Depositing User:||Anna Yurko|
|Date Deposited:||03. Apr 2012 19:30|
|Last Modified:||14. Apr 2015 15:34|
1. Jerome Adda and Russell Cooper. Balladurette and Juppette: A discrete analysis of scrapping subsidies. Journal of Political Economy, 108(4):778–806, 2000.
2. Jerome Adda and Russell Cooper. The dynamics of car sales: A discrete choice approach. Working Paper 7785, National Bureau of Economic Research, 2007.
3. Consumer Expenditure Survey: Interview Survey and Detailed Expenditure Files. US Department of Labor, Bureau of Labor Statistics, 2002.
4. Cynthia Chen and Debbie Niemeier. A mass point vehicle scrappage model. Transportation Research Part B, 39:401–415, 2005.
5. Jiawei Chen, Susanna Esteban, and Matthew Shum. How much competition is a secondary market? Working Paper 2010/06, IMDEA, Working Paper Series in Economics and Social Sciences, 2010.
6. Susanna Esteban and Matthew Shum. Durable-goods oligopoly with secondary markets: the case of automobiles. RAND Journal of Economics, 38(2):332–354, 2007.
7. Carol Gilbert. A duration model of automobile ownership. Transportation Research Part B, 26(2):97–114, 1992.
8. Alan Greenspan and David Cohen. Motor vehicle stocks, scrappage, and sales. Review of Economics and Statistics, 81(3):369–383, 1999.
9. Bruce Hamilton and Molly Macauley. Heredity or environment: Why is automobile longevity increasing? Journal of Industrial Economics, 47(3):251–261, 1999.
10. Igal Hendel and Alessandro Lizzeri. Adverse selection in durable goods markets. American Economic Review, 89(5):1097–1115, 1997.
11. Omar Licandro, Luis Puch, and Antonio Sampayo. Secondhand market and the lifetime of durable goods. Working Paper 2006–10, FEDEA, 2006.
12. Terry Miller, Wayne Davis, Gregory Reed, Prakash Doraiswamy, and Anna Tang. Effect of county-level income on vehicle age distribution and emissions. Transportation Research Record, 1815:47–53, 2002.
13. John Nelder and Roger Mead. A simplex method for function minimization. Computer Journal, 7:308–313, 1965.
14. Robert Porter and Peter Sattler. Patterns of trade in the market for used durables. Working Paper 7149, National Bureau of Economic Research, 1999.
15. Pasquale Schiraldi. Automobile replacement: A dynamic structural approach. RAND Journal of Economics, 42(2):266–291, 2011.
16. Dmitriy Stolyarov. Turnover of used durables in a stationary equilibrium: Are older goods traded more? Journal of Political Economy, 110(6):1390–1413, 2002.
17. Karl Storchmann. On the depreciation of automobiles: An international comparison. Transportation, 31:371–408, 2004.
18. Human Development Report. United Nations Development Programme, 2006, 2007/2008, 2009.
19. Ward’s Automotive Yearbook. Ward’s Communications, Detroit, 2002.
Available Versions of this Item
From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages. (deposited 25. May 2008 05:12)
- From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages. (deposited 03. Apr 2012 19:30) [Currently Displayed]