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Estimating the Effects of Consumer Incentive Programs on Domestic Automobile Sales

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  • Thompson, Patrick A
  • Noordewier, Thomas
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    Abstract

    The authors investigate the effects of consumer sales promotion on automobile sales, the largest dollar volume durable goods category in retailing. Between 1985 and 1987, the domestic automakers offered major year-end promotions on automobiles, using low-rate financing and cash rebates to stimulate sales. This paper evaluates the sales patterns for 1983 through 1987, explicitly estimating the effects of the incentive programs. The analysis indicates that the 1985 and 1986 promotional campaigns were quite successful, but that the 1987 campaign was largely ineffective. The 1986 and 1987 promotions were also followed by large postpromotion drops in sales.

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    Bibliographic Info

    Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

    Volume (Year): 10 (1992)
    Issue (Month): 4 (October)
    Pages: 409-17

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    Handle: RePEc:bes:jnlbes:v:10:y:1992:i:4:p:409-17

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    Cited by:
    1. Massimiliano Mazzanti & Antonio Musolesi, 2009. "Carbon Kuznets Curves: Long-run Structural Dynamics and Policy Events," Working Papers 2009.87, Fondazione Eni Enrico Mattei.
    2. Massimiliano Mazzanti & Antonio Musolesi, 2010. "Carbon Abatement Leaders and Laggards Non Parametric Analyses of Policy Oriented Kuznets Curves," Working Papers 2010.149, Fondazione Eni Enrico Mattei.
    3. Abbas Valadkhani & Allan P. Layton, 2003. "Quantifying the Effect of GST on Inflation in Australia’s Capital Cities: An Intervention Analysis," School of Economics and Finance Discussion Papers and Working Papers Series 153, School of Economics and Finance, Queensland University of Technology.
    4. Massimiliano Mazzanti & Antonio Musolesi, 2011. "Income and time related effects in EKC," Working Papers 201105, University of Ferrara, Department of Economics.
    5. Massimiliano Mazzanti & Antonio Musolesi, 2012. "Breaking Environmental Kuznets Curves. Evaluating Energy and Policy Time Events Effects on CO2 Trends for Advanced Countries," Working Papers 201214, University of Ferrara, Department of Economics.
    6. Mazzanti, M. & Musolesi, A., 2013. "Economic development and CO2 emissions: assessing the effect of policy and energy time events for advanced countries," Working Papers 2013-11, Grenoble Applied Economics Laboratory (GAEL).

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