I estimate the extent to which consumers respond to energy costs when purchasing energy-using durables, when product-specific lifetime is provided and considered. Using market- level transaction data for lightbulbs, I compare consumer demand responses to the local annual energy cost versus the...

We exploit the spatial and temporal variation of the staggered introduction of interstate banking deregulation across the U.S. to study the relationship between credit constraints and consumption of durables. Using the American Housing Survey from 1981 to 1989, we link the timing of these...

Temporary price promotions, or sales, are common in many markets. Using retail scanner data, I find that manufacturers, not retailers, control the timing of sales, while retailers exercise some control over the magnitude of the price decrease. I also find that observed sale policy is more...

Durables goods can be used for consumption services, but also as equipment for production. The literature has documents that durable good producers have higher expected returns, while investment good producers lower risk premiums. I resolve this seemingly conflicting evidence by suggesting that...

We formulate and estimate a dynamic structural model of consumer behavior with the user cost of durable goods by incorporating costly reversibility and adjustment costs, and analyze the demands for durable and nondurable goods, using U.S. data. We find an important role of a secondhand market in...

This paper revives the question of whether a temporary VAT change is an adequate instrument for crisis stabilization. In empirical assessments, we find that durable goods consumption fluctuates strongly over the business cycle and that VAT rate changes affect durable goods in particular....

The paper develops a modeling framework to study how sustainability interventions impact consumer adoption of durable goods innovation, firm profit and environmental outcomes in equilibrium. Our two period model with forward looking consumers and a monopoly firm introducing an innovation in...