Esteban, Susanna - In: Contributions to Theoretical Economics 7 (2007) 1, pp. 1200-1200
It is a common practice for governments to offer scrappage subsidies in order to stimulate the early removal of used … power, a subsidy can induce scrappage even if it pays less than the price of a used car in the absence of the subsidy. We … provide a full characterization of the effects of scrappage subsidies on primary and secondary markets for the case of a …
