Rationing Rules and Outcomes: The Experience of Singapore's Vehicle Quota System

30 Pages Posted: 31 Jan 2006

See all articles by Ling Hui Tan

Ling Hui Tan

International Monetary Fund (IMF) - European Department

Date Written: September 2001

Abstract

Since 1990, Singapore has sought to control motor vehicle ownership by means of an auction quota system, whereby prospective vehicle buyers need to obtain a quota license before they can make their purchase. This paper assesses the success of the vehicle quota system in meeting its objectives of stability in motor vehicle growth, flexibility in the motor vehicle mix, and equity among motor vehicle buyers. Two important implementation issues - quota subcategorization and license transferability - are highlighted, and policy lessons are drawn for the design of auction quotas in general.

Keywords: Quotas, auctions, licenses, transferability, subcategorization

JEL Classification: D44, D45, R48

Suggested Citation

Tan, Ling Hui, Rationing Rules and Outcomes: The Experience of Singapore's Vehicle Quota System (September 2001). IMF Working Paper No. 01/136, Available at SSRN: https://ssrn.com/abstract=879920

Ling Hui Tan (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

700 19th St. NW
Washington, DC 20431
United States

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