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)
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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, Faculty of Economics, University of Tokyo 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, Research Institute of Economy, Trade and Industry (RIETI) 07026, Research Institute of Economy, Trade and Industry (RIETI).
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