Analysis of consumers´ preferences for cars on Slovak market.
|Author:||Bc. Michal Nedeľka|
|Year:||2022 - summer|
|Leaders:|| Mgr. Milan Ščasný PhD.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis investigates the effect of registration tax and fuel prices on the
car market in Slovakia. Using the dataset provided by the Department of
Evidence and Papers of Slovak Police Force with information about vehicles
that entered the national car evidence, we compute monthly registrations of
passenger vehicles. Given the nature of our data, we estimate pooled OLS
model with fixed effects, focusing on different vehicle segments. We also analyse
fuel price elasticity when prices were mostly decreasing or increasing to examine
asymmetric response of car buyers. Results suggest a negative impact of the
registration tax on the number of registrations of petrol vehicles with a stronger
response of fuel efficient cars compared to less efficient. In the segment of diesel
vehicles, only registrations of used and less efficient cars are affected by the tax.
The elasticity of registrations with respect to fuel costs is negative for all car
segments except for the new efficient petrol-fueled vehicles. Registrations of
diesel vehicles are more sensitive with respect to fuel price changes than petrol
cars in most segments. We also find an asymmetric response to fuel prices
during the periods of price increases and decreases and declining responsiveness