Turnover of Used Durables in a Stationary Equilibrium: Are Older Goods Traded More?

S-Tier
Journal: Journal of Political Economy
Year: 2002
Volume: 110
Issue: 6
Pages: 1390-1413

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper develops a dynamic model with transaction costs to determine the equilibrium resale pattern in a market for a durable good. The key result is that the probability of resale is nonmonotonic in the age of the good. Trade volume is relatively low in the very beginning and in the middle of a good's life. This result helps explain observed variations of resale rates across vintages for the U.S. market of used cars.

Technical Details

RePEc Handle
repec:ucp:jpolec:v:110:y:2002:i:6:p:1390-1413
Journal Field
General
Author Count
1
Added to Database
2026-01-29