Daily Econ from Elliot Eisenberg

We would like to start including some daily tidbits from a well known economist, Elliot Eisenberg.  Read, Learn, Enjoy!

 

Automobile regulation that improves fuel efficiency raises the price of new cars. That in turn raises the price of used cars, as some buyers avoid higher new car costs by buying used ones. This unsurprisingly reduces the number of used cars that get scrapped. And since used cars have worse gas mileage than new ones, this unintended longer used car lifespan negates about 18% of expected gasoline savings.

 

Elliot F. Eisenberg, Ph.D.

GraphsandLaughs, LLC

elliot@graphsandlaughs.net

Cell: 202.306.2731

www.econ70.com

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