2017

Bailing on the Car That Was Not Bailed Out: Bounding Consumer Reactions to Financial Distress

Reprint No. 2017:32

Author(s): Christian Huse and Nikita KoptyugYear: 2017 Title: Journal of Economics & Management Strategy Volume (No.): 26 (2) Pages: 337–374
Online article (restrictions may apply)
Preliminary version

We examine how consumers react to the financial distress of durable goods manufacturers by studying the Swedish new car market. We employ a difference-in-differences matching methodology whereby we compare sales of carmaker Saab with those of a control group of substitute products. To account for possible substitution between products in the treatment and control groups, we propose and apply bounds to our difference-in-differences matching estimator. We then refine the bounds and provide conditions under which they depend only on product elasticities. We find that there was a significant decrease in the sales of Saab following its filing for administration.

Reference:
Huse, Christian and Nikita Koptyug (2017), "Bailing on the Car That Was Not Bailed Out: Bounding Consumer Reactions to Financial Distress". Journal of Economics & Management Strategy 26(2), 337–374.

Nikita Koptyug

Contact

Ph: +46 8 665 45 82
nikita.koptyug@ifn.se

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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