IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v63y1987i3p247-254.html
   My bibliography  Save this article

Automobile Loss Rates and the Expected Capital Cost of Vehicles: An Empirical Note

Author

Listed:
  • DAVID A. HENSHER

Abstract

Knowledge of the market loss rate of vehicles is necessary for the determination of the expected capital cost of vehicles, a major influence on vehicle demand. It is also required in its own right for predicting the availability of specific vehicles of known vintage at future dates. We draw on the existing literature on vehicle scrappage and its links with future vehicle prices to provide a simple framework for determining the loss rates and relevant capital costs of the stock of vehicles available in 1982 in the Sydney metropolitan area. The empirical evidence shows that vehicle prices haw an influence on vehicle life expectancy. and that technical deterioration alone is an inappropriate basis for loss rate determination.

Suggested Citation

  • David A. Hensher, 1987. "Automobile Loss Rates and the Expected Capital Cost of Vehicles: An Empirical Note," The Economic Record, The Economic Society of Australia, vol. 63(3), pages 247-254, September.
  • Handle: RePEc:bla:ecorec:v:63:y:1987:i:3:p:247-254
    DOI: 10.1111/j.1475-4932.1987.tb00655.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1987.tb00655.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1475-4932.1987.tb00655.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mertens, Yves & Ginsburgh, Victor, 1985. "Product Differentiation and Price Discrimination in the European Community: The Case of Automobiles," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 151-166, December.
    2. Victor Ginsburgh & Yves Mertens, 1985. "Product differentiation and discrimination in the European Community: the case of automobiles," ULB Institutional Repository 2013/1755, ULB -- Universite Libre de Bruxelles.
    3. Charles F. Manski & Ephraim Goldin, 1983. "An Econometric Analysis of Automobile Scrappage," Transportation Science, INFORMS, vol. 17(4), pages 365-375, November.
    4. Parks, Richard W, 1977. "Determinants of Scrapping Rates for Postwar Vintage Automobiles," Econometrica, Econometric Society, vol. 45(5), pages 1099-1115, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reza Ahmadi & B. Rachel Yang, 2000. "Parallel Imports: Challenges from Unauthorized Distribution Channels," Marketing Science, INFORMS, vol. 19(3), pages 279-294, March.
    2. Dvir, Eyal & Strasser, Georg, 2018. "Does marketing widen borders? Cross-country price dispersion in the European car market," Journal of International Economics, Elsevier, vol. 112(C), pages 134-149.
    3. Bernardin Akitoby & Jean Mercenier, 1993. "On intertemporal general-equilibrium reallocation effects of Europe's move to a single market," Discussion Paper / Institute for Empirical Macroeconomics 87, Federal Reserve Bank of Minneapolis.
    4. Reis, Hugo J. & Santos Silva, J.M.C., 2006. "Hedonic prices indexes for new passenger cars in Portugal (1997-2001)," Economic Modelling, Elsevier, vol. 23(6), pages 890-908, December.
    5. Mercenier, J. & Schmitt, N., 1992. "Sunk Costs, Free-Entry Equilibrium and Trade Liberalization in Applied General Equilibrium : Implication for "Europe 1992"," Cahiers de recherche 9235, Universite de Montreal, Departement de sciences economiques.
    6. Anderson, Simon P. & Schmitt, Nicolas & Thisse, Jacques-Francois, 1995. "Who benefits from antidumping legislation?," Journal of International Economics, Elsevier, vol. 38(3-4), pages 321-337, May.
    7. Mercenier, Jean, 1995. "Can "1992" reduce unemployment in Europe? On welfare and employment effects of Europe's move to a single market," Journal of Policy Modeling, Elsevier, vol. 17(1), pages 1-37, February.
    8. Johannes Mauritzen, 2014. "Scrapping a Wind Turbine: Policy Changes, Scrapping Incentives and Why Wind Turbines in Good Locations Get Scrapped First," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    9. Victor Ginsburgh & Shlomo Weber, 2002. "Product Lines and Price Discrimination in the European Car Market," Manchester School, University of Manchester, vol. 70(1), pages 101-114, January.
    10. Molly Espey & Santosh Nair, 2005. "Automobile Fuel Economy: What Is It Worth?," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 317-323, July.
    11. Gross, Dominique M. & Schmitt, Nicolas, 2000. "Exchange rate pass-through and dynamic oligopoly: an empirical investigation," Journal of International Economics, Elsevier, vol. 52(1), pages 89-112, October.
    12. Vlad Radoias, 2016. "Direct and indirect price discrimination in the automotive industries of the European Union," Empirical Economics, Springer, vol. 50(3), pages 975-990, May.
    13. Ebru Caglayan Akay & mer Faruk Bolukbasi & Engin Bekar, 2018. "Robust and Resistant Estimations of Hedonic Prices for Second Hand Cars: an Application to the Istanbul Car Market," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 39-47.
    14. Douglas Nelson, 1996. "The Political Economy of U.S. Automobile Protection," NBER Chapters, in: The Political Economy of American Trade Policy, pages 133-196, National Bureau of Economic Research, Inc.
    15. Douglas Cooper & David Greenaway & Anthony Rayner, 1993. "Intra-Industry trade and limited producer horizons: An empirical investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(2), pages 345-366, June.
    16. Hsu, Shi-Ling & Sperling, Daniel, 1994. "Uncertain Air Quality Impacts of Automobile Retirement Programs," University of California Transportation Center, Working Papers qt9hk939jn, University of California Transportation Center.
    17. Verboven, F.L., 1994. "International price discrimination in the European car market : An econometric model of oligopoly behavior with product differentiation," Discussion Paper 1994-51, Tilburg University, Center for Economic Research.
    18. George C. Bitros, 2004. "Determinants of Expenditure in Automobile Maintenance: Some Evidence from Greece," Macroeconomics 0411007, University Library of Munich, Germany.
    19. Feenstra, Robert C. & Gagnon, Joseph E. & Knetter, Michael M., 1996. "Market share and exchange rate pass-through in world automobile trade," Journal of International Economics, Elsevier, vol. 40(1-2), pages 187-207, February.
    20. de Melo, Jaime & Messerlin, Patrick, 1988. "Effects of European VERs on Japanese autos," Policy Research Working Paper Series 21, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:63:y:1987:i:3:p:247-254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.