Samenvatting
In this study the 1986 and 1991 data of the Dutch Private Car Panel are analyzed in order to find out if and how Dutch drivers reacted to the relatively large price changes that occurred in both years. Since the data come in the format of a rotating panel, econometric work has to take into account individual effects. Two standard methods are available: the Fixed Effects Model (FEM), and the Random Effects Model (REM). Both methods are applied, and the FEM gives substantially different results for the data concerning 1986 and 1991. For REM the differences are smaller. Differences between FEM and REM are substantial in all cases. Explanations for these findings are suggested. (A)