Subsidising car purchases in the euro area: Any spill-over on production?

Arbeitspapier

Due to input-output linkages, an industry level shock can widely transmit to the rest of the economy. We identify government policies on the automobile industry, which change final prices and estimate their effect on sales and production. An example could be the scrappage schemes that many European governments introduced at the start of the Great Recession. In line with previous studies, we confirm that the effect on car sales is positive. More interestingly, we extend the literature that explores the effects of these policies on domestic and foreign production to disentangle the potential spill-overs.

Object Details

• ISBN: 978-92-899-2816-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2094

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Quantitative Policy Modeling ; Macroeconomics: Production ; Fiscal Policy ; Business Taxes and Subsidies including sales and value-added (VAT)
• Subject: Bayesian GVAR ; Fiscal Policy ; Production ; Automotive Industry ; Spill-overs

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Paredes, Joan
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2017

Further information

• DOI: doi:10.2866/169136
• Handle: http://hdl.handle.net/10419/175718
• Last update: 10.03.2025, 11:43 AM CET