Hire purchase controls and replacement cycles
The control of hire purchase by specifying and altering minimum terms has been subjected to numerous objections, most of which are administrative or social in substance. Recently, however, a strictly economic critique of these controls has been developed which contends that hire purchase controls te...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2014-03-01
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| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11918 |
| _version_ | 1828042271775260672 |
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| author | J.K.S. GHANDHI |
| author_facet | J.K.S. GHANDHI |
| author_sort | J.K.S. GHANDHI |
| collection | DOAJ |
| description | The control of hire purchase by specifying and altering minimum terms has been subjected to numerous objections, most of which are administrative or social in substance. Recently, however, a strictly economic critique of these controls has been developed which contends that hire purchase controls tend to lead to replacement cycles in the market for consumer durables. The present article tests this hypothesis by formalizing the basic model and testing it with empirical data. Based on the analysis and the statistical evidence the author argues that the conditions necessary for the generation of a hire purchase induced replacement cycle are unlikely to be realized, except in the most extreme circumstances. Therefore, the objection to the use of hire purchase controls on the grounds that they tend to lead to replacement cycles is unwarranted.
JEL: D12, L68
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| first_indexed | 2024-04-10T17:27:54Z |
| format | Article |
| id | doaj.art-3c5fc5fbae7c4344b6601a3c83c65732 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:27:54Z |
| publishDate | 2014-03-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-3c5fc5fbae7c4344b6601a3c83c657322023-02-03T16:51:11ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432014-03-01156210.13133/2037-3643/11918Hire purchase controls and replacement cyclesJ.K.S. GHANDHIThe control of hire purchase by specifying and altering minimum terms has been subjected to numerous objections, most of which are administrative or social in substance. Recently, however, a strictly economic critique of these controls has been developed which contends that hire purchase controls tend to lead to replacement cycles in the market for consumer durables. The present article tests this hypothesis by formalizing the basic model and testing it with empirical data. Based on the analysis and the statistical evidence the author argues that the conditions necessary for the generation of a hire purchase induced replacement cycle are unlikely to be realized, except in the most extreme circumstances. Therefore, the objection to the use of hire purchase controls on the grounds that they tend to lead to replacement cycles is unwarranted. JEL: D12, L68 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11918Hire purchasereplacement cyclesmarket for consumer durables |
| spellingShingle | J.K.S. GHANDHI Hire purchase controls and replacement cycles PSL Quarterly Review Hire purchase replacement cycles market for consumer durables |
| title | Hire purchase controls and replacement cycles |
| title_full | Hire purchase controls and replacement cycles |
| title_fullStr | Hire purchase controls and replacement cycles |
| title_full_unstemmed | Hire purchase controls and replacement cycles |
| title_short | Hire purchase controls and replacement cycles |
| title_sort | hire purchase controls and replacement cycles |
| topic | Hire purchase replacement cycles market for consumer durables |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11918 |
| work_keys_str_mv | AT jksghandhi hirepurchasecontrolsandreplacementcycles |