The effects of replacement schemes on car sales: the Spanish case

Omar Licandro () and Antonio Sampayo

Investigaciones Economicas, 2006, vol. 30, issue 2, 239-282

Abstract: 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.

Keywords: Car scrapping; replacement schemes; heterogeneous consumers (search for similar items in EconPapers)
JEL-codes: D12 H31 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://www.fundacionsepi.es/investigacion/revista ... /May2006/v30i2a3.pdf Full text (application/pdf)

Related works:
Working Paper: The effects of replacement schemes on car sales: the Spanish case (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iec:inveco:v:30:y:2006:i:2:p:239-282

Ordering information: This journal article can be ordered from
https://www.fundacio ... tas/presentacion.asp

Access Statistics for this article

Investigaciones Economicas is currently edited by Antonio Cabrales and Pedro Mira

More articles in Investigaciones Economicas from Fundación SEPI Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain.
Bibliographic data for series maintained by Isabel Sánchez-Seco ( this e-mail address is bad, please contact ).