Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore

This paper studies expectations formation and forecasting of vehicle demand in Singapore under the vehicle quota system. Under the system, a car buyer must first bid for a vehicle license in monthly auctions in order to purchase a new car. We construct an econometric model to test the hypothesis tha...

Full description

Saved in:
Bibliographic Details
Main Authors: CHU, Sing-Fat, KOH, Winston T. H., TSE, Yiu Kuen
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2004
Subjects:
Online Access:https://ink.library.smu.edu.sg/soe_research/427
https://ink.library.smu.edu.sg/context/soe_research/article/1426/viewcontent/1_s2.0_S0965856403001204_main.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.soe_research-1426
record_format dspace
spelling sg-smu-ink.soe_research-14262019-05-01T13:40:50Z Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore CHU, Sing-Fat KOH, Winston T. H. TSE, Yiu Kuen This paper studies expectations formation and forecasting of vehicle demand in Singapore under the vehicle quota system. Under the system, a car buyer must first bid for a vehicle license in monthly auctions in order to purchase a new car. We construct an econometric model to test the hypothesis that past bid distributions of the license auctions contain information that car buyers can use to update their expectations about the intensity of market demand, forecast license premiums and formulate their bidding strategies in future auctions. Our empirical analysis indicates that past bid distributions have a good degree of predictive power for the vehicle license premiums. 2004-06-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/427 info:doi/10.1016/j.tra.2003.12.002 https://ink.library.smu.edu.sg/context/soe_research/article/1426/viewcontent/1_s2.0_S0965856403001204_main.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Quota licenses Vehicle demand Learning Expectations formation Singapore Asian Studies Behavioral Economics Transportation
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Quota licenses
Vehicle demand
Learning
Expectations formation
Singapore
Asian Studies
Behavioral Economics
Transportation
spellingShingle Quota licenses
Vehicle demand
Learning
Expectations formation
Singapore
Asian Studies
Behavioral Economics
Transportation
CHU, Sing-Fat
KOH, Winston T. H.
TSE, Yiu Kuen
Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore
description This paper studies expectations formation and forecasting of vehicle demand in Singapore under the vehicle quota system. Under the system, a car buyer must first bid for a vehicle license in monthly auctions in order to purchase a new car. We construct an econometric model to test the hypothesis that past bid distributions of the license auctions contain information that car buyers can use to update their expectations about the intensity of market demand, forecast license premiums and formulate their bidding strategies in future auctions. Our empirical analysis indicates that past bid distributions have a good degree of predictive power for the vehicle license premiums.
format text
author CHU, Sing-Fat
KOH, Winston T. H.
TSE, Yiu Kuen
author_facet CHU, Sing-Fat
KOH, Winston T. H.
TSE, Yiu Kuen
author_sort CHU, Sing-Fat
title Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore
title_short Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore
title_full Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore
title_fullStr Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore
title_full_unstemmed Expectations Formation and Forecasting of Vehicle Demand: An Empirical Study of the Vehicle Quota Auctions in Singapore
title_sort expectations formation and forecasting of vehicle demand: an empirical study of the vehicle quota auctions in singapore
publisher Institutional Knowledge at Singapore Management University
publishDate 2004
url https://ink.library.smu.edu.sg/soe_research/427
https://ink.library.smu.edu.sg/context/soe_research/article/1426/viewcontent/1_s2.0_S0965856403001204_main.pdf
_version_ 1770569163762302976