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Heredity or Environment: Why is Automobile Longevity Increasing?

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  • Bruce W. Hamilton
  • Molly K. Macauley

Abstract

Over the past 25 years the longevity of automobiles has increased dramatically. We disentangle the rise in longevity into an embodied or inherent‐durability effect and a disembodied effect (driven by the external environment, such as reduced accident rates or reductions in the prices of auto repair parts) and estimate these effects by year from 1950 through 1991. We find that the entire rise in auto longevity is due to some force disembodied from the cars themselves and offer some speculation about the nature of this external environment.

Suggested Citation

  • Bruce W. Hamilton & Molly K. Macauley, 1999. "Heredity or Environment: Why is Automobile Longevity Increasing?," Journal of Industrial Economics, Wiley Blackwell, vol. 47(3), pages 251-261, September.
    • Handle: RePEc:bla:jindec:v:47:y:1999:i:3:p:251-261
    DOI: 10.1111/1467-6451.00100
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    Cited by:

    1. Palmer, Karen & Macauley, Molly & Shih, Jhih-Shyang & Cline, Sarah & Holsinger, Heather, 2001. "Modeling the Costs and Environmental Benefits of Disposal Options for End-of-Life Electronic Equipment: The Case of Used Computer Monitors," RFF Working Paper Series dp-01-27, Resources for the Future.
    2. Crespi John M. & Marette Stephan, 2009. "Quality, Sunk Costs and Competition," Review of Marketing Science, De Gruyter, vol. 7(1), pages 1-36, August.
    3. Yurko, Anna, 2008. "Can Increases in Real Consumer Incomes Explain the Aging of Motor Vehicles in the US?," MPRA Paper 8850, University Library of Munich, Germany, revised Apr 2008.
    4. Marco Runkel, 2004. "Optimal Emissions Taxation under Imperfect Competition in a Durable Good Industry," Bulletin of Economic Research, Wiley Blackwell, vol. 56(2), pages 115-132, April.

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