Trade policies in the U.S. automobile industry

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Abstract

This paper uses the results from estimating an empirical model of the U.S. Automobile Industry to investigate two trade policy questions: The effects of the Voluntary Export Restraint in the early 1980s and the impact of NAFTA on prices and variable profits in the U.S. Automobile Industry.

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    This paper was presented at the Eight Annual Japan-U.S. Technical Symposium on ‘Trade Policy and CoPe Bob Staiger and Frank Wolak for their feedback at an earlier stage of this project. I am also grateful to Avinash Dixit, my discussants, Jim Levinsohn and Noriyuki Yanagawa, the editor of this journal, and several conference participants for helpful comments and suggestions. The responsibility for any errors is of course my own.

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