A Dynamic Empirical Analysis of Household Vehicle Ownership and Utilization

Fred Mannering and Clifford Winston

RAND Journal of Economics, 1985, vol. 16, issue 2, 215-236

Abstract: In this article we develop a dynamic model of household vehicle ownership and utilization behavior by using data that were generated before, during, and after the 1979 energy crisis. The principal empirical findings are that households have maintained a distinct preference for American over foreign cars, but also have strong brand loyalties. The results suggest that notwithstanding recent financial trends, U.S. firms must continue to make technological improvements in their vehicles and must combat the brand loyalty that has developed for foreign vehicles if the domestic automobile industry is to be viable at the present scale of operations.

Date: 1985
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