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Autoverkopen en autopark in Nederland, 1950–1970
Author(s) -
CRAMER J. S.
Publication year - 1968
Publication title -
statistica neerlandica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 39
eISSN - 1467-9574
pISSN - 0039-0402
DOI - 10.1111/j.1467-9574.1968.tb01361.x
Subject(s) - econometrics , stock (firearms) , elasticity (physics) , economics , car ownership , geography , transport engineering , engineering , public transport , materials science , archaeology , composite material
Summary This is a study of the demand for the ownership of new or firsthand cars, i.e. the demand of ‘first owners’ who habitually buy new cars which are then traded in long before they are obsolescent. Upon combining the evidence of various surveys with time‐series for 1950‐64 it is found that this ownership has an income elasticity of 2 and a price elasticity of – 1.25 in respect of the constant‐quality index of new car prices earlier provided. On the average new cars are traded in after three years so that roughly one third of the existing stock is replaced every year. These values together determine an equation for purchases of new cars which accurately predicts new registrations in 1965 and 1966. Projections for the years 1967‐70 are provided. In the model employed the total number of cars (including used cars) is determined by the active demand exerted by ‘first owners’ on one hand and by the hitherto fairly constant scrappage rates on the other. Projections of the overall ownership rate can therefore be derived from the forecasts of new registrations. The ownership rate will approach 80% around 1970, and it is likely that at that stage the current scrappage rates will cease to apply in view of the greater predilection for comparatively younger cars.