Applied Economics Workshop
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چکیده
We investigate how gasoline prices affect automobile purchases. We find that the adjustment of equilibrium market shares and prices in response to changes in usage cost varies dramatically between new and used markets. In the new car market, the adjustment is primarily in market shares, while in the used car market, the adjustment is primarily in prices. The effects are largest for the mostand least-fuel efficient cars. We argue that the difference in how gasoline costs affect new and used automobile markets can be explained by differences in the supply characteristics of new and used cars.
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تاریخ انتشار 2009