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What is Auto Purchase Dynamics and Consumer Behavior about?

This document summarizes an article that examines household automobile purchasing behavior through an analysis of panel data. The author tests whether household purchases follow an optimal (S,s) rule as predicted by a model with transactions costs, or are better explained by a liquidity constraints model. The author finds that about half of households follow the (S,s) rule. For these households, the author calculates the parameters of the decision rule and finds it is unaffected by income/wealth levels but

Author

wololo7

Language

EN