A Vintage Model of Trade in Secondhand Markets and the Lifetime of Durable Goods
AbstractHow is the replacement of durable goods affected by the existence of a secondhand market? To answer this question, a vintage model of durable goods replacement is specified where efficient trade in used goods arises by assuming the existence of two types of consumers differentiated by income. The resulting steady state optimal replacement decision and secondhand market price are characterized, stressing the influence of economic depreciation. Compared to autarky, the consideration of an efficient secondhand market between high and low income people modifies the age profile of prices, increasing and decreasing for durable goods owned by high and low income people, respectively. Moreover, at the age at which used durable goods are traded, not only ask and bid prices are equal but also their age derivatives.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Mathematical Population Studies.
Volume (Year): 15 (2008)
Issue (Month): 4 ()
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- BOUCEKKINE, Raouf & HRITONENKO, Natali & YATSENKO, Yuri, .
"Scarcity, regulation and endogenous technical progress,"
CORE Discussion Papers RP
-2334, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Boucekkine, Raouf & Hritonenko, Natali & Yatsenko, Yuri, 2011. "Scarcity, regulation and endogenous technical progress," Journal of Mathematical Economics, Elsevier, vol. 47(2), pages 186-199, March.
- Raouf BOUCEKKINE & Natali HRITONENKO & Yuri YATSENKO, 2010. "Scarcity, regulation and endogenous technical progress," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.