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Paulo Albuquerque and Bart J. Bronnenberg

We present an illustration of how marketing and structural models can be applied in a public policy context. We describe the demand model in Albuquerque and Bronnenberg (2012) to evaluate the impact of the 2009 federal policy measure known as the “Car Allowance Rebate System” program (or “Cash for Clunkers”) on prices and demand in the auto sector.