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

Author/Editor:

Ling H Tan

Publication Date:

September 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2001/136

Subject:

Arbitrage Commodities Population and demographics Population growth Tax incidence Tax policy Taxes Transaction tax

English

Publication Date:

September 1, 2001

ISBN/ISSN:

9781451855814/1018-5941

Stock No:

WPIEA1362001

Pages:

30

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