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title:(Fixed AND and AND variable AND cost AND of AND automobiles)

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1 Conference paper

Fixed and variable cost of automobiles

Recent empirical analyses have found strong reactions of car prices to changes in fuel costs. We develop a model of car quality choice to further investigate this relationship. We show that in the empirically relevant case quality characteristics increase fixed as well as variable costs, and our

Year: 2014

Language: English

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2 Journal article

The impact of fixed and variable cost on automobile demand: Evidence from Denmark

and derive an expression for the full willingness to pay for characteristics that takes into account the impact on fixed as well as variable costs. We apply the model to the demand for automobiles using rich Danish register data. Estimation reveals considerable heterogeneity and a non-negligible contribution

Year: 2015

Language: English

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