Theses and Dissertations at Montana State University (MSU)
Permanent URI for this communityhttps://scholarworks.montana.edu/handle/1/732
Browse
2 results
Search Results
Item Effects of free trade agreements on U.S. automobile prices(Montana State University - Bozeman, College of Agriculture, 1999) Uitdewilligen, Gerardus Bernardus; Chairperson, Graduate Committee: Robert K. Fleck.Trade in automobiles and automotive parts between the United States, Canada and Mexico has more than doubled since 1985. Trade agreements implemented during this time period could be a reason for the increased trade. No earlier research has been conducted for this time period to determine the price effects of the free trade agreements. This thesis explores the price effects of reallocating automobile assembly capacity outside the United States, focusing on the price effects for U.S. automobile consumers. The regression results suggest that automobiles assembled in Canada or Mexico have not become cheaper compared to U.S. only assembled automobiles after implementation of the trade agreements. However, U.S. new automobile buyers have benefitted from the free trade agreements. Prices of new automobiles in the U.S. have fallen relative to other goods. These price decreases are for all automobiles regardless of assembly origin.Item Scrap tire management : tire demand estimation(Montana State University - Bozeman, College of Agriculture, 2002) Ochmann, Nico; Chairperson, Graduate Committee: Robert K. Fleck.The proper management of scrap tires is relatively resource-intensive. Two features of waste tires produce internal and external costs. Their donut-like shape occupies vast space on transportation vehicles and in general landfills. It also allows the breeding of disease-carrying mosquitoes in populated areas. Their rubber and steel composition makes them durable and at the same time costly to reduce in size. Tire rubber can also generate air and ground pollutants during fires. Mosquito and fire outbreaks are associated with scrap tire stocks of any size. Faced with increasing flows of scrap tires (and other solid and hazardous waste), local officials consider a policy to decrease the waste tire generation rate, i.e., source-reduction. To implement such a policy, a critical first step is to determine, theoretically and empirically, the factors that influence tire demand. Consequently, this thesis applies basic consumer theory to specify important economic determinants of tire demand. Their empirical counterparts form the basis of the explanatory variables in the econometric demand model. Tire sales quantities are derived from state revenue collections of a per unit tire tax on new tire purchases. Measurement errors in the dependent variable and lack of explanatory data motivate the use of the generalized least-squares fixed effects estimator in a pooled tire demand model comprising 28 states. The qualitative results of the econometric estimation are in conformity with economic theory. Quantitatively, the model produces an income elasticity of 0.4; a ten percent increase in real per capita income increases tire sales per vehicle by four percent, ceteris paribus. This effect is very likely to measure increased gasoline consumption, i.e., vehicle utilization. The calculated own price elasticity of tire demand is about -15, which is too large to reflect a pure price effect. Unless statistical problems generate this estimate, it probably captures a movement of and along the tire demand curve.