Price, Consumer Expectations, Policy Impact on the Automobile Industry in the United States — Empirical Evidence from 2005 to 2020

Research Article
Open access

Price, Consumer Expectations, Policy Impact on the Automobile Industry in the United States — Empirical Evidence from 2005 to 2020

Mingxuan Li 1*
  • 1 Shanghai Maritime University    
  • *corresponding author mingxuanli2023@foxmail.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/22/20230294
AEMPS Vol.22
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-87-4
ISBN (Online): 978-1-915371-88-1

Abstract

Automobiles are good partners for the American people to live and work with, and the automobile industry has made remarkable contributions to the economic development of the United States. In this paper, the development level of the automobile industry is measured by the annual sales volume. With the help of economic demand determination theory, through the combination of qualitative analysis and quantitative analysis, it is found that prices, policies, and consumer expectations will impact automobile sales volume and then affect the development level of the automobile industry. This paper can provide a reference for the decision-making of government, automobile enterprises, and consumers.

Keywords:

automobile industry, market demand, prices, policies, consumer expectations

Li,M. (2023). Price, Consumer Expectations, Policy Impact on the Automobile Industry in the United States — Empirical Evidence from 2005 to 2020. Advances in Economics, Management and Political Sciences,22,99-110.
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References

[1]. Mo Kadry (2021) How Will Shared Mobility Trends Change the Future of Automobile Ownership? https://www.cubictelecom.com/blog/future-of-automobiles-ownership-mobility-as-a-service/

[2]. Dan Brown (2022) Ten Indicators That the Auto Industry Will Roar Back in 2023. https://www.miamiautomobiles.com/business/10-indicators-that-the-auto-industry-is-poised-for-hyper-growth-in-23/

[3]. N. Gregory Mankiw (2015) Principles of Economics, seventh edition. Peking University, Beijing. Original edition published by Cengage Learning (2012)

[4]. Mathilde Carlier (2022) Automotive industry worldwide - statistics & facts https://www.statista.com/topics/1487/automotive-industry/#topicOverview

[5]. Sky Ariella (2022) 36 Important U.S. Automotive Industry Statistics [2023]: Facts, Trends, And Projections https://www.zippia.com/advice/automotive-industry-statistics/

[6]. J.B. Maverick (2022) What Raw Materials Do Auto Manufacturers Use? https://www.investopedia.com/

[7]. William Brazila (2019) The role of fuel cost information in new automobile sales Transportation Research Part D: Transport and Environment, 74: 93-103

[8]. Delvin Davis (2011) Under the Hood: Auto Loan Interest Rate Hikes Inflate Consumer Costs and Loan Losses www.responsiblelending.org

[9]. Clément Carbonnier (2007) Who pays sales taxes? Evidence from French VAT reforms, 1987–1999, Journal of Public Economics 91:1219–1229

[10]. Anna Alberini, Markus Bareit (2019) The effect of registration taxes on new automobile sales and emissions: Evidence from Switzerland, Resource and Energy Economics 56:96–112

[11]. Charles Stuart (1984) Welfare Costs per Dollar of Additional Tax Revenue in the United States. The American Economic Review, Vol. 74, No. 3, pp. 352-362

[12]. PA AUTO SALES (2021) 14 Factors that Determine Automobile Sales https://www.paautosales.com/14-factors-that-determine-automobile-sales/

[13]. Rabiul Islam, Ahmad Bashawir Abdul Ghani, Bobby Kusuma, Eric Teh Yew Hong (2016) An Analysis of Factors that Affecting the Number of Automobile Sales in Malaysia, International Review of Management and Marketing, 6(4) pp.872-882.

[14]. Lacey Plache (2013) Rising Unemployment Rate Not a Bad Sign for New Automobile Sales, https://www.edmunds.com/industry-center/analysis/rising-unemployment-rate-not-a-bad-sign-for-new-automobile-sales.html

[15]. Law Insider, Travel Services definition, https://www.lawinsider.com/dictionary/travel-services

[16]. Statista, Highway mileage within the United States from 1990 to 2020, https://www.statista.com/statistics/183397/united-states-highway-mileage-since-1990/

[17]. AMERICAN AUTOMOBILE ASSOCIATION (2016) Proprietary research into the use of premium octane gasoline when not required by the manufacturer, https://newsroom.aaa.com/asset/u-s-drivers-waste-2-1-billion-annually-on-premium-gasoline-full-report/https://www.bea.gov/

[18]. https://www.bea.gov/


Cite this article

Li,M. (2023). Price, Consumer Expectations, Policy Impact on the Automobile Industry in the United States — Empirical Evidence from 2005 to 2020. Advances in Economics, Management and Political Sciences,22,99-110.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN:978-1-915371-87-4(Print) / 978-1-915371-88-1(Online)
Editor:Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.22
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Mo Kadry (2021) How Will Shared Mobility Trends Change the Future of Automobile Ownership? https://www.cubictelecom.com/blog/future-of-automobiles-ownership-mobility-as-a-service/

[2]. Dan Brown (2022) Ten Indicators That the Auto Industry Will Roar Back in 2023. https://www.miamiautomobiles.com/business/10-indicators-that-the-auto-industry-is-poised-for-hyper-growth-in-23/

[3]. N. Gregory Mankiw (2015) Principles of Economics, seventh edition. Peking University, Beijing. Original edition published by Cengage Learning (2012)

[4]. Mathilde Carlier (2022) Automotive industry worldwide - statistics & facts https://www.statista.com/topics/1487/automotive-industry/#topicOverview

[5]. Sky Ariella (2022) 36 Important U.S. Automotive Industry Statistics [2023]: Facts, Trends, And Projections https://www.zippia.com/advice/automotive-industry-statistics/

[6]. J.B. Maverick (2022) What Raw Materials Do Auto Manufacturers Use? https://www.investopedia.com/

[7]. William Brazila (2019) The role of fuel cost information in new automobile sales Transportation Research Part D: Transport and Environment, 74: 93-103

[8]. Delvin Davis (2011) Under the Hood: Auto Loan Interest Rate Hikes Inflate Consumer Costs and Loan Losses www.responsiblelending.org

[9]. Clément Carbonnier (2007) Who pays sales taxes? Evidence from French VAT reforms, 1987–1999, Journal of Public Economics 91:1219–1229

[10]. Anna Alberini, Markus Bareit (2019) The effect of registration taxes on new automobile sales and emissions: Evidence from Switzerland, Resource and Energy Economics 56:96–112

[11]. Charles Stuart (1984) Welfare Costs per Dollar of Additional Tax Revenue in the United States. The American Economic Review, Vol. 74, No. 3, pp. 352-362

[12]. PA AUTO SALES (2021) 14 Factors that Determine Automobile Sales https://www.paautosales.com/14-factors-that-determine-automobile-sales/

[13]. Rabiul Islam, Ahmad Bashawir Abdul Ghani, Bobby Kusuma, Eric Teh Yew Hong (2016) An Analysis of Factors that Affecting the Number of Automobile Sales in Malaysia, International Review of Management and Marketing, 6(4) pp.872-882.

[14]. Lacey Plache (2013) Rising Unemployment Rate Not a Bad Sign for New Automobile Sales, https://www.edmunds.com/industry-center/analysis/rising-unemployment-rate-not-a-bad-sign-for-new-automobile-sales.html

[15]. Law Insider, Travel Services definition, https://www.lawinsider.com/dictionary/travel-services

[16]. Statista, Highway mileage within the United States from 1990 to 2020, https://www.statista.com/statistics/183397/united-states-highway-mileage-since-1990/

[17]. AMERICAN AUTOMOBILE ASSOCIATION (2016) Proprietary research into the use of premium octane gasoline when not required by the manufacturer, https://newsroom.aaa.com/asset/u-s-drivers-waste-2-1-billion-annually-on-premium-gasoline-full-report/https://www.bea.gov/

[18]. https://www.bea.gov/