Durable goods, costly reversibility, and adjustment costs: A user cost approach with nondurable goods.
Durable goods are typically treated as irreversible or costlessly reversible with no allowance for adjustment costs. We formulate and estimate a dynamic structural model of durable goods with the user cost that features costly reversibility and adjustment costs with nondurable goods, and analyze the...
| Publicado en: | Southern Economic Journal Vol. 93; no. 1; pp. 85 - 128 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jul2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=195040062&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 195040062 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jul2026 vid: 93 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 195040062 10.1002/soej.12778 ppf: 85 ppct: 43 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 6MB tig: atl: Durable goods, costly reversibility, and adjustment costs: A user cost approach with nondurable goods. aug: au: Kim, H. Youn Wong, K. K. Gary affil: Department of Economics, Western Kentucky University, Bowling Green Kentucky,, USA Department of Economics, FSS, The University of Macau, Taipa, Macau SAR, China su: Elasticity (Economics) Cost Durable consumer goods Secondhand trade Intertemporal choice Cost analysis Commercial products sug: subj: Elasticity (Economics) Cost Commodity Contracts Brokerage Commodity Contracts Dealing Other Miscellaneous Durable Goods Merchant Wholesalers Used Merchandise Stores Second-hand goods (except machinery and automotive) merchant wholesalers Durable consumer goods Secondhand trade Intertemporal choice Cost analysis Commercial products keyword: adjustment costs costly reversibility Euler equations indirect utility function secondhand markets user cost adjustment costs costly reversibility Euler equations indirect utility function secondhand markets user cost ab: Durable goods are typically treated as irreversible or costlessly reversible with no allowance for adjustment costs. We formulate and estimate a dynamic structural model of durable goods with the user cost that features costly reversibility and adjustment costs with nondurable goods, and analyze the demands for durable and nondurable goods using U.S. data. We find an important role of secondhand markets in mitigating the irreversibility of durable goods and smoothing consumption against income shocks, with costly reversibility. We show that the consumer's observed behavior of durable goods, though not optimal, does not depart substantially from the time path of durables stock estimated with adjustment costs. There is a material difference in demand elasticities for nondurable and durable goods estimated with the user cost, with and without adjustment costs. While these findings are illuminating, durable goods are heterogeneous, and we find significant quantitative differences in adjustment costs among them. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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