Did US safeguards resuscitate Harley-Davidson in the 1980s?
AbstractThis paper examines US safeguards applied to the motorcycle market in the 1980s. After receiving temporary protection by means of a maximum tariff of over 45%, Harley-Davidson sales recovered dramatically. Simulations, based on structural demand and supply estimates, indicate that while safeguard tariffs did benefit Harley-Davidson, they only account for a fraction of its increased sales. This is primarily because consumers perceived that Harley-Davidson and Japanese large motorcycles were poorly matched substitutes for each other. Our results provide little evidence that safeguard provisions triggered restructuring in Harley-Davidson.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 79 (2009)
Issue (Month): 2 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505552
Safeguard Tariff Random coefficient discrete choice model Motorcycles;
Other versions of this item:
- Taiju Kitano & Hiroshi Ohashi, 2009. "Did US Safeguards Resuscitate Harley-Davidson in the 1980s?," CIRJE F-Series CIRJE-F-612, CIRJE, Faculty of Economics, University of Tokyo.
- KITANO Taiju & OHASHI Hiroshi, 2007. "Did U.S. Safeguard Resuscitate Harley Davidson in the 1980s?," Discussion papers 07026, Research Institute of Economy, Trade and Industry (RIETI).
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