Costs, Technology, and Productivity in the U.S. Automobile Industry
AbstractThis article analyzes the structure of costs, technology, and productivity in the U.S. automobile industry by estimating a general hedonic joint cost function for domestic automotive production for the Big Three American automobile producers: General Motors, Ford, and Chrysler. In general it is found that costs are highly sensitive to the scale and composition of output, with General Motors and Chrysler experiencing an output configuration that exhibits increasing returns to scale and economies of joint production. On the other hand, Chrysler's recent productivity growth is found to be far below that of General Motors. Although Ford's cost structure is not so advantageous as General Motors', its recent productivity growth suggests that it can remain an effective competitor in the domestic automotive market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 14 (1983)
Issue (Month): 1 (Spring)
Contact details of provider:
Web page: http://www.rje.org
Other versions of this item:
- A. F. Friedlaender & C. Winston & D. K. Wang, 1982. "Costs, Technology and Productivity in the U. S. Automobile Industry," Working papers 294, Massachusetts Institute of Technology (MIT), Department of Economics.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Iseki, Hiroyuki, 2008. "Economies of scale in bus transit service in the USA: How does cost efficiency vary by agency size and level of contracting?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(8), pages 1086-1097, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.