A Dynamic Structural Analysis of Consumer Demand for Automobiles in Sydney, Australia, 1981-1985
This paper develops a dynamic stochastic model of consumer demand for automobiles in a discrete choice context, where automobile transactions are costly and automobile scrappage is endogenously determined. Automobile quality is modeled as having both a non-depreciable component (e.g., wheelbase or number of cylinders) and a depreciable component (e.g., aggregate odometer reading). Discretization of the continuous component of the automobile replacement decision (i.e. the quality of the replacement automobile) allows this mixed-control process to be approximated as a high-dimensional discrete-control process. Choice probabilities, conditional on consumer demographics and the individual components of automobile quality, can then be estimated using Rust's nested fixed-point algorithm. This estimation technique is applied to panel data on household automobile transactions in Sydney, Australia during the years 1981-85.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
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.
|Date of creation:||01 Mar 1999|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://fmwww.bc.edu/CEF99/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sce:scecf9:731. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.