Replication data for: A Quantitative Analysis of the Used-Car Market

Principal Investigator(s):  View help for Principal Investigator(s) Alessandro Gavazza; Alessandro Lizzeri; Nikita Roketskiy

Version:  View help for Version V1

Name File Type Size Last Modified
  calibration 10/27/2021 10:32:AM
  counterfactuals 10/27/2021 10:35:AM
  tables 10/27/2021 10:36:AM
AER-2012-0538-paper.pdf application/pdf 297.2 KB 10/11/2019 05:09:PM
readme.pdf application/pdf 70.2 KB 10/11/2019 05:09:PM

Project Description

Summary:  View help for Summary We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An important source of gains from trade in these markets is the heterogeneity in the willingness to pay for higher-quality (newer) goods, but transaction costs are an impediment to instantaneous trade. Calibration of the model successfully matches several aggregate features of the U.S. and French used-car markets. Counterfactual analyses show that transaction costs have a large effect on volume of trade, allocations, and the primary market. Aggregate effects on consumer surplus and welfare are relatively small, but the effect on lower-valuation households can be large.

Scope of Project

Subject Terms:  View help for Subject Terms [Equilibrium analysis, calibration]
JEL Classification:  View help for JEL Classification
      D23 Organizational Behavior; Transaction Costs; Property Rights
      L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment
      L81 Retail and Wholesale Trade; e-Commerce
Geographic Coverage:  View help for Geographic Coverage United States, France
Universe:  View help for Universe All households in the United States and France, privately owned passenger cars in the United States and France
Data Type(s):  View help for Data Type(s) program source code

Methodology

Data Source:  View help for Data Source Consumer Expenditure Survey, Enquete Budget des Familles
Unit(s) of Observation:  View help for Unit(s) of Observation households,

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Published Versions

V1 [2019-10-11]

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