Economics at your fingertips  

Identifying odometer fraud in used car market data

Josef Montag ()

Transport Policy, 2017, vol. 60, issue C, 10-23

Abstract: This paper investigates the presence of odometer fraud in the used car market using a large dataset of car sale advertisements from the Czech Republic. The strategic aspects of sale decisions and the practice of rounding odometer readings, however, render the standard statistical tests for fabricated data invalid. I therefore develop and employ a modification of the last-digit test, which has been used to detect fraud in election data. Simulations using the data from advertisements and travel survey data from the United States support the validity of this test under alternative distributional assumptions. The results suggest that suspicious patterns are more prevalent in the segment of cars imported from abroad. I also show that this test can be used at the seller level, which may be of interest to authorities and market participants.

Keywords: Used car market; Odometer fraud; Digit tests (search for similar items in EconPapers)
JEL-codes: K42 R40 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tranpol.2017.07.018

Access Statistics for this article

Transport Policy is currently edited by Y. Hayashi

More articles in Transport Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2020-03-29
Handle: RePEc:eee:trapol:v:60:y:2017:i:c:p:10-23