Car notches
Subtitle: strategic automaker responses to fuel economy policy
By: James M. Sallee, Joel Slemrod
Contributors: Slemrod, Joel; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16604; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16604.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Notches --- where small changes in behavior lead to large changes in a tax or subsidy --- figure prominently in many policies, but have been rarely examined by economists.  In this paper, we analyze a class of notches associated with policies aimed at improving vehicle fuel economy.  We provide several pieces of evidence showing that automakers respond to notches in fuel economy policy by precisely manipulating fuel economy ratings so as to just qualify for more favorable treatment.  We then describe the welfare consequences of this behavior and derive a welfare summary statistic applicable to many contexts"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 4/5/2011.

Includes bibliographical references.

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