Does Government Activism Affect Second-hand Car Prices? Evidence from a Natural Experiment
Margin: The Journal of Applied Economic Research, 2018, vol. 12, issue 1, 1-18
A significant body of literature has focused on the impact of policy changes on consumption behaviour. Most of this literature looks at the impact of anticipated and durable changes, thereby ignoring the impact of unanticipated changes. In this context, exploiting a unique data set for India, the article examines the impact of a temporary â€˜oddâ€“evenâ€™ policy experiment in Delhi on second-hand car prices. The findings suggest that car prices on average, declined by 2.7 per cent after the policy announcement, although these prices subsequently recouped the initial losses. A disaggregation of car prices in terms of costs indicates that these results are driven by low-priced cars and, additionally, that cars with odd-number ending registrations commanded a premium in the market.
Keywords: Car Price; Oddâ€“Even Rule; Delhi (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
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:sae:mareco:v:12:y:2018:i:1:p:1-18
Access Statistics for this article
More articles in Margin: The Journal of Applied Economic Research from National Council of Applied Economic Research
Bibliographic data for series maintained by SAGE Publications ().