Scrappage by age: Cash for Clunkers matters!

2019 ◽  
Vol 124 ◽  
pp. 488-504 ◽  
Author(s):  
Juan Laborda ◽  
María J. Moral
Keyword(s):  
Cash For Clunkers

Cash for clunkers: You read it here first

2009 ◽  
Vol 62 (9) ◽  
pp. 4
Author(s):  
David H. Kirkwood
Keyword(s):  
Cash For Clunkers

An assessment of two environmental and economic benefits of ‘Cash for Clunkers’

2013 ◽  
Vol 96 ◽  
pp. 173-180 ◽  
Author(s):  
Shoshannah M. Lenski ◽  
Gregory A. Keoleian ◽  
Michael R. Moore
Keyword(s):  
Economic Benefits ◽  
Cash For Clunkers

scholarly journals Cash for Corollas: When Stimulus Reduces Spending

2017 ◽  
Vol 9 (3) ◽  
pp. 1-35 ◽  
Author(s):  
Mark Hoekstra ◽  
Steven L. Puller ◽  
Jeremy West
Keyword(s):  
Automobile Industry ◽  
Great Recession ◽  
Regression Discontinuity ◽  
Fuel Efficiency ◽  
Regression Discontinuity Design ◽  
Consumer Spending ◽  
Eligibility Criteria ◽  
The Great Recession ◽  
Cash For Clunkers

The 2009 Cash for Clunkers program aimed to stimulate consumer spending in the new automobile industry, which experienced disproportionate reductions in demand and employment during the Great Recession. Exploiting program eligibility criteria in a regression discontinuity design, we show more than half of the subsidies went to households who would have purchased during the two-month program anyway; the rest accelerated sales by no more than eight months. Moreover, the program's fuel efficiency restrictions shifted purchases toward vehicles that cost on average $7,600 less. Thus, we estimate on net the $3 billion program reduced total new vehicle spending by $5 billion. (JEL E32, E62, E65, H24, H31, L62)

scholarly journals Trading on Up: An Examination of Factors Influencing the Degree of Upgrade: Evidence from Cash for Clunkers

2018 ◽  
Vol 83 (1) ◽  
pp. 151-172 ◽  
Author(s):  
Chadwick J. Miller ◽  
Michael A. Wiles ◽  
Sungho Park
Keyword(s):  
Brand Loyalty ◽  
Durable Goods ◽  
Mental Accounting ◽  
Economic Conditions ◽  
Factors Affecting ◽  
Marginal Costs ◽  
Factors Influencing ◽  
Replacement Decisions ◽  
Negative Effect ◽  
Cash For Clunkers

Durable goods firms often create product lineups to provide a clear upgrading path as consumers make replacement decisions. Consumers can upgrade a little (i.e., spend a bit more than last time) or a lot (i.e., spend substantially more). However, the factors affecting the degree of such vertical “moving up” have received limited scholarly attention. In particular, little is known about how trade-in characteristics and the marginal costs–benefits of the new purchase influence the degree of upgrade. The authors use 320,000 Cash for Clunkers automobile transactions to provide the first examination of how mental accounting surpluses from trade-in ownership time and trade-in windfall, in addition to brand loyalty, affect the degree of upgrade. The authors find that trade-in ownership time and brand loyalty enhance the replacement’s degree of upgrade. However, trade-in windfall size has a negative effect, revealing the downside of this common promotional practice. Two experiments and additional dealer data indicate that this finding is robust to different economic conditions. Thus, these findings provide valuable new guidance for durable goods firms to facilitate the degree to which consumers upgrade.

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