The Effects of Higher Gasoline Prices on U.S. Light Vehicle Sales, Prices, and Variable Profit by Segment and Manufacturer Group, 2001 and 2004
AbstractThe rising gasoline prices of the past few years were not associated with shifts from vehicles with lower MPG to vehicles with higher MPG. This has been seen as evidence that gasoline prices have little impact on the purchase choices of new-vehicle buyers. However, this paper presents new evidence that the shifts toward vehicles with higher MPG that the rising price of gasoline would have caused were not observed because they were offset by price cuts that were disproportionately applied to vehicles with lower MPG.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0505010.
Length: 13 pages
Date of creation: 25 May 2005
Date of revision:
Note: Type of Document - pdf; pages: 13. pdf
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fuel economy; gasoline prices; automobile demand; nested multinomial logit; variable profit;
Find related papers by JEL classification:
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-29 (All new papers)
- NEP-BEC-2005-05-29 (Business Economics)
- NEP-DCM-2005-05-29 (Discrete Choice Models)
- NEP-ENE-2005-05-29 (Energy Economics)
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