Short Sighted Solutions: Trade and Energy Policies for the US Auto Industry

1st Edition

Robert E. Scott

Routledge
Published August 20, 2019
Reference - 196 Pages
ISBN 9781138061521 - CAT# Y331728
Series: Routledge Library Editions: The Automobile Industry

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Summary

This book, originally published in 1994, explores the effects of federal policies on the US auto industry in the 1970s and 80s which were designed to save jobs and help the domestic industry become more competitive. The author develops a new model based on modern oliopoly theory to estimate the effects of the voluntary Restraint Agreements (which limited Japanese imports) on the US auto market. The results demonstrate that VRAs caused price increases which adversely affected the comptitiveness of US producers. On the eve of a new Trump administration, and the likelihood of new restrictions on imports to boost US manufacturing, this book has particular enduring relevance.

 

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