A NOTE ON CAR REPLACEMENT

The author describes an approach to the study of the demand for cars which does not assume the usual high elasticity between new and used car markets. It assumes that the demand for new cars is primarily for replacement, and an expression for the lag distribution generating replacement is given. The model is applied to the case of new car sales in the United States by utilising published survey data of new car registrations, the proportion of new car buyers who trade in or sell their old car and the ages of the cars sold. The relationship between the timing of replacement and economic factors is investigated using the model. /TRRL/

• Corporate Authors:

  Longman Group Limited

  33 Montgomery Street
  Edinburgh EH7 5JX, ZZ Scotland   
• Authors:
  • SMITH, R P
• Publication Date: 1974-10

Language

• English

Media Info

• Features: References;
• Pagination: p. 567-570
• Serial:
  • REVIEW OF ECONOMIC STUDIES
  • Volume: 41

Subject/Index Terms

• TRT Terms: Automobiles; Demand; Economic factors; Equipment replacement; Mathematical models; Registrations; Sales; Used vehicle industry
• Uncontrolled Terms: Replacement
• Geographic Terms: United States
• ITRD Terms: 285: Demand (econ); 6473: Mathematical model; 8122: USA
• Subject Areas: Economics; Finance; Highways; Maintenance and Preservation; Operations and Traffic Management; Planning and Forecasting; Society; Vehicles and Equipment; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00127904
• Record Type: Publication
• Source Agency: Transport and Road Research Laboratory (TRRL)
• Files: ITRD, TRIS
• Created Date: Dec 29 1975 12:00AM