India is the one of the top 15 largest passenger car markets globally, and is expected to be among the top 10 markets by 2016. Post-liberalization, many foreign manufacturers have set up their operations in India. The latest trend of new cars on the Indian road has led to the emergence of an...

Due to input-output linkages, an industry level shock can widely transmit to the rest of the economy. We identify government policies on the automobile industry, which change final prices and estimate their effect on sales and production. An example could be the scrappage schemes that many...