Quality-Based Price Discrimination and Tax Incidence: Evidence from Gasoline and Diesel Cars
AbstractThe existing tax policies toward gasoline and diesel cars in European countries provide a unique opportunity to analyze quality-based price discrimination and the implied tax incidence. In my econometric framework, consumers choose the type of engine based on their annual mileage; prices are set by the manufacturers. The relative pricing of gasoline and diesel cars appears to be consistent with monopolistic price discrimination, effectively segmenting low-mileage from high-mileage consumers. On average, about 75% to 90% of the price differentials between gasoline and diesel cars can be explained by markup differences. I draw implications for the effectiveness and the revenue effects of tax policy.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 33 (2002)
Issue (Month): 2 (Summer)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Klier, Thomas & Linn, Joshua, 2011.
"Fuel Prices and New Vehicle Fuel Economy in Europe,"
dp-11-37, Resources For the Future.
- Thomas Klier & Joshua Linn, 2011. "Fuel Prices and New Vehicle Fuel Economy in Europe," Working Papers 1117, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Matiaske, Wenzel & Menges, Roland & Spiess, Martin, 2012.
"Modifying the rebound: It depends! Explaining mobility behavior on the basis of the German socio-economic panel,"
Elsevier, vol. 41(C), pages 29-35.
- Wenzel Matiaske & Roland Menges & Martin Spieß, 2009. "Modifying the Rebound: It Depends!: Explaining Mobility Behaviour on the Basis of the German Socio-Economic Panel," SOEPpapers on Multidisciplinary Panel Data Research 174, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Hennessy, Hugh & Tol, Richard S.J., 2011.
"The impact of tax reform on new car purchases in Ireland,"
Elsevier, vol. 39(11), pages 7059-7067.
- Hennessy, Hugh & Tol, Richard S. J., 2010. "The Impact of Tax Reform on New Car Purchases in Ireland," Papers WP349, Economic and Social Research Institute (ESRI).
- Maxim Engers & Monica Hartmann & Steven Stern, 2009. "Annual miles drive used car prices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(1), pages 1-33.
- Ashok Kaul & Gregor Pfeifer & Stefan Witte, 2012. "The incidence of Cash for Clunkers: an analysis of the 2009 car scrappage scheme in Germany," ECON - Working Papers 068, Department of Economics - University of Zurich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.