Gains from trade in used goods: Evidence from automobiles

• 成果类型: Article
• 署名作者: Clerides, Sofronis
• 署名单位: University of Cyprus
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2008.07.009
• 发表日期: 2008
• 页码: 322-336
• 关键词: Automobile industry; gains from trade; Used goods; trade liberalization; Cyprus

摘要

I investigate the welfare effects of trade liberalization by exploiting a natural policy experiment in the economy of Cyprus. A 1993 law relaxed import restrictions on used vehicles and enabled the importation of second-hand Japanese automobiles into the country. This led to a dramatic shift of consumer purchases from new to used cars and a substantial expansion of the overall market. Welfare gains computed from a structural demand system average $2000 per purchaser per year over a four-year period after the policy change. The findings are suggestive of the potential for substantial gains from liberalizing trade in used goods. (C) 2008 Elsevier B.V. All rights reserved.