Options, the value of capital, and investment
Name
35719430.pdf
Size
1.29 MB
Format
Adobe PDF
Checksum (MD5)
3c7a1e059f281ad8ec25d9bf3b0c681d
Author(s)
Abel, Andrew B.
Date Issued
1995
Publisher
MIT Center for Energy and Environmental Policy Research
Series/Report no.
MIT-CEEPR (Series) ; 95-006WP.
Abstract
Continuing rapid growth in U.S. gasoline consumption threatens to exacerbate environmental and congestion problems. We use flexible semiparametric and nonparametric methods to guide analysis of household gasoline consumption, and including this variable cuts the estimated income elasticity in half. Slower projected future growth in licensed drivers points to slower growth in gasoline consumption. A parsimonious representation of age, income, lifecycle and location effects is developed and tested. We show how flexible methods also helped reveal fundamental problems with the available price data.
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