We evaluate the impact of the Spanish car scrappage program introduced in May 2009 on short-run car purchases. The scrappage program was simultaneously discussed and implemented, and was therefore exogenous to the consumers. We analyse the effect of this program on household new car purchase decision and household expenditures. The results show that the scrappage program increased the probability to buy a new car, but decreased the mean expenditure devoted to the purchase of this new vehicle. We also evaluate the impact of the financial aid on the household welfare, which suggests that the scrappage program was neutral.
|Publisher||Munich Personal RePEc Archive|
|Number of pages||29|
|Publication status||Published - Jan 2015|
- Car demand
- scrappage program
- economic crisis