New Reports

McManus, W. 2005. The Effects of Higher Gasoline Prices on U.S. Light Vehicle Sales, Prices, and Variable Profit by Segment and Manufacturer Group, 2001 and 2004.
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This paper examines the effects on the U.S. automotive industry of two trends that have coincided since 2001, a rising real price of gasoline and growth in direct-to-consumer incentives. The rise in the real price of gasoline has been modest in historical terms, and sales of low-mileage sport utility vehicles and pickups have been stable, leading many observers to conclude that consumer demand has not been responsive to the rise in gasoline prices.