Credit Constraints, Consumer Leasing and the Automobile Replacement DecisionDivisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, 1999 - Automobile leasing and renting - 28 pages |
Common terms and phrases
action adverse selection Anne Wilson Athanasios Orphanides automobile market Automobile Replacement Decision automobile services borrowing constraint c₁s choice of automobile conditional probability Consumer Leasing decision to lease discount factor Economics Discussion Series empirical model estimated expensive automobiles Federal Reserve Board Federal Reserve System Finance and Economics find that lessees functional form Geo Prizm gross rate household chooses household receives household replaces household's choice household's decision household's income households who lease indirect utility Jeremy Berkowitz July lease an automobile lease automobile lease contracts leasing and purchasing level of automobile Louise Sheiner Low Time Discount Low VMT Region maximization problem Monetary Policy Moral Hazard Non-white or Hispanic number of functional optimal option percentage points prefer newer probability of leasing reduces the number replace their automobile replaces its automobile September 1999 shown in equation standard errors subsistence level theoretical model transaction cost user cost V₁ vehicles in stock willingness to pay