The effects of replacement schemes on car replacementthe Spanis case
- Rodríguez Sampayo, Antonio
- Licandro, Omar
ISSN: 0210-1521
Año de publicación: 2006
Título del ejemplar: Evaluación de políticas públicas
Volumen: 30
Número: 2
Páginas: 239-282
Tipo: Artículo
Otras publicaciones en: Investigaciones económicas
Resumen
This paper studies a model of car replacement designed to evaluate policies addressed to influence replacement decisions. An aggregate hazard function is computed from optimal replacement rules of heterogeneous consumers, which mimics the hump-shaped hazard function observed for the Spanish car market. The model is calibrated to evaluate quantitatively the Plan Prever, a replacement scheme introduced in Spain in 1997, finding that the positive effect of the subsidy is high in the short run but small in the long run for both sales and the average age of the stock.