The demand for cars and the price of gasoline: the user cost approach.

Investigates the effect of operating costs, that is, the price of gasoline, on the demand for cars. Shows that when operating costs are nonnegligible, and a car purchase involves significant transaction costs, the aggregate demand for cars should incluce operating costs and user costs as separate components. Section II discusses the user cost approach and the data. Section III describes the model and derives the equations for estimation. Section IV presents the estimate for new and total quantity of car services in the aggregate. Separate equations for different engine sizes are given in section V. Section VI is a short summary. -from Author