Economics at your fingertips  

Gasoline Prices and the Used Automobile Market: A Rational Expectations Asset Price Approach

James Kahn ()

The Quarterly Journal of Economics, 1986, vol. 101, issue 2, 323-339

Abstract: This paper examines the impact of changes in gasoline price expectations on the market values of used automobiles. An asset model of automobile valuation is used to relate year-to-year changes in market values to changes in the present discounted value of gasoline expenses. Econometric evidence from data covering the years 1972 through 1981 substantially confirms the hypothesis of the model that a gasoline price shock causes relative price changes across automobile types in proportion to the differences in their rates of fuel consumption.

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (37) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to full text is restricted to subscribers.

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:

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Elhanan Helpman, Lawrence F. Katz and Andrei Schleifer

More articles in The Quarterly Journal of Economics from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().

Page updated 2020-07-08
Handle: RePEc:oup:qjecon:v:101:y:1986:i:2:p:323-339.