Langer, Ashley; Miller, Nathan H. - In: The Review of Economics and Statistics 95 (2013) 4, pp. 1198-1211
We provide empirical evidence that automobile manufacturers use cash incentives to offset how gasoline price fluctuations affect the expected fuel expenses of automobile buyers. Regressions based on a database of incentives over 2003 to 2006 suggest that on average, manufacturers offset 40% of...