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Production Impact of ńˇýCash-for-ClunkersńˇŁ: Implications for Stabilization Policy
Production Impact of äóìCash-for-Clunkersäó: Implications for Stabilization Policy
 
Our Price: $20.00
By Adam Copeland (au); James Kahn (au)
Year: 2012
Pages: 32
Binding Paperback
ISBN 978-1-4578-3060-0

Product Code: 1457830604

Description
 
Stabilization policies frequently aim to boost spending as a means to increase GDP. Spending does not necessarily translate into production, however, especially when inventories are involved. This report looks at the ńˇýcash-for-clunkersńˇŁ program that helped finance the purchase of nearly 700,000 vehicles in 2009. An analysis of auto sales and production movements reveals that the program did prompt a large spike in sales. But the program had only a modest and fleeting impact on production, as inventories buffered the movements in sales. These findings suggest caution in judging the efficacy of such policies by their impact on spending alone. Tables and figures. This is a print on demand report.

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