Yurko, Anna (2008): From Consumer Incomes to Car Ages: How the Distribution of Income Affects the Distribution of Vehicle Vintages.
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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 and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E21 - Consumption; Saving; Wealth
|Depositing User:||Anna Yurko|
|Date Deposited:||03. Apr 2012 19:30|
|Last Modified:||12. Apr 2014 07:44|
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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]