Cash for Corollas: When Stimulus Reduces Spending
Mark Hoekstra (),
Steven Puller () and
Jeremy West ()
American Economic Journal: Applied Economics, 2017, vol. 9, issue 3, 1-35
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-codes: E32 E62 E65 H24 H31 L62 (search for similar items in EconPapers)
Note: DOI: 10.1257/app.20150172
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... 0GW6cFLAP4umoD0PilgM (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... QVCA97mr21h5m66I0QX6 (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... RPIkon5PpA1wAYd5Mc0I (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Cash for Corollas: When Stimulus Reduces Spending (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aejapp:v:9:y:2017:i:3:p:1-35
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Journal: Applied Economics is currently edited by Alexandre Mas
More articles in American Economic Journal: Applied Economics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().