An sS model with adverse selection

Journal of Political Economy

Volumn 112, Issue 3, 2004, Pages 581-614

  House, Christopher L ^a   Leahy, John V ^b  

^a UNIVERSITY OF MICHIGAN   (United States)

^b NEW YORK UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

MARKET CONDITIONS; MODEL; THEORETICAL STUDY;

EID: 3142679431     PISSN: 00223808     EISSN: None     Source Type: Journal    
DOI: 10.1086/383104     Document Type: Article

References (28)

1. Abel, Andrew, Avinash K. Dixit, Janice C. Eberly, and Robert S. Pindyck. 1996. "Options, the Value of Capital, and Investment." Q.J.E. III (August): 753-77.
2. Adda, Jerome, and Russell Cooper. 2000. "Balladurette and Juppette: A Discrete Analysis of Scrapping Subsidies." J.P.E. 108 (August): 778-806.
3. Akerlof, George A. 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism." Q.J.E. 84 (August): 488-500.
4. Arrow, Kenneth J., Theodore Harris, and Jacob Marschak. 1951. "Optimal Inventory Policy." Econometrica 19 (July): 250-72.
5. Bar-Ilan, Avner, and Alan S. Blinder. 1992. "Consumer Durables: Evidence on the Optimality of Usually Doing Nothing." J. Money, Credit and Banking 24 (May): 258-72.
6. Bertola, Giuseppe, and Ricardo J. Caballero. 1990. "Kinked Adjustment Costs and Aggregate Dynamics." In NBER Macroeconomics Annual 1990, edited by Olivier J. Blanchard and Stanley Fischer. Cambridge, Mass.: MIT Press.
7. Bickel, P.J., and E. L. Lehmann. 1979. "Descriptive Statistics for Nonparametric Models TV. Spread." In Contributions to Statistics: Jaroslav Hájek Memorial Volume, edited by Jana Jurečková. Dordrecht, Holl.: Reidel (for Czechoslovak Acad. Sci.).
8. Bond, Eric W. 1982. "A Direct Test of the 'Lemons' Model: The Market for Used Pickup Trucks." A.E.R. 72 (September): 836-40.
9. Caballero, Ricardo J. 1993. "Durable Goods: An Explanation for Their Slow Adjustment." J.P.E. 101 (April): 351-84.
10. Caballero, Ricardo J. 1994. "Notes on the Theory and Evidence on Aggregate Purchases of Durable Goods." Oxford Rev. Econ. Policy 10 (Summer): 107-17.
11. Caplin, Andrew, and John V. Leahy. 1999. "Durable Goods Cycles." Working Paper no. 6987 (February). Cambridge, Mass.: NBER.
12. Carroll, Christopher D., and Wendy E. Dunn. 1997. "Unemployment Expectations, Jumping (S,s) Triggers, and Household Balance Sheets." In NBER Macroeconomics Annual 1997, edited by Ben S. Bernanke and Julio J. Rotemberg. Cambridge, Mass.: MIT Press.
13. Chezum, Brian, and Bradley Wimmer. 1997. "Roses or Lemons: Adverse Selection in the Market for Thoroughbred Yearlings," Rev. Econ. and Statis. 79 (August): 521-26.
14. Danziger, Lief 1999. "A Dynamic Economy with Costly Price Adjustments." A.E.R. 89 (September): 878-901.
15. Eberly, Janice C. 1994. "Adjustment of Consumers' Durables Stocks: Evidence from Automobile Purchases." J.P.E. 102 (June): 403-36.
16. Eisfeldt, Andrea L. 2004. "Endogenous Liquidity in Asset Markets." J. Finance 59 (February): 1-30.
17. Genesove, David. 1993. "Adverse Selection in the Wholesale Used Car Market." J.P.E. 101 (August): 644-65.
18. Grossman, Sanford J., and Guy Laroque. 1990. "Asset Pricing and Optimal Portfolio Choice in the Presence of Illiquid Durable Consumption Goods." Econometrica 58 (January): 25-51.
19. Hendel, Igal, and Alessandro Lizzeri. 1999. "Adverse Selection in Durable Goods Markets." A.E.R. 89 (December): 1097-1115.
20. Hendel, Igal, and Alessandro Lizzeri. 2002. "The Role of Leasing under Adverse Selection." J.P.E. 110 (February): 113-43.
21. Hendel, Igal, Alessandro Lizzeri, and Marciano Siniscalchi. 2003. "Efficient Sorting in a Dynamic Adverse Selection Model." Manuscript. New York: New York Univ.
22. House, Christopher L., and John V. Leahy. 2000. "An sS Model with Adverse Selection." Working Paper no. 8030 (December). Cambridge, Mass.: NBER.
23. Lacko, James. 1986. "Product Quality and Information in the Used Car Market." Staff report. Washington, D.C.: Fed. Trade Comm.
24. Leahy, John V., and Joseph Zeira. 1999. "The Timing of Purchases and Aggregate Fluctuations." Manuscript. Boston: Boston Univ., Dept. Econ.
25. Rosenman, Robert E., and Wesley W. Wilson. 1991. "Quality Differentials and Prices: Are Cherries Lemons?" J. Indus. Organization 39 (December): 649-58.
26. Sargent, Thomas J. 1987. Dynamic Macroeconomic Theory. Cambridge, Mass.: Harvard Univ. Press.
27. Stiglitz, Joseph E., 1997. Economics. 2d ed. New York: Norton.
28. Stolyarov, Dmitriy. 2002. "Turnover of Used Durables in a Stationary Equilibrium: Are Older Goods Traded More?" J.P.E. 110 (December): 1390-1413.