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Did US Safeguards Resuscitate Harley-Davidson in the 1980s?

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  • Taiju Kitano

    (National Graduate Institute for Policy Studies)

  • Hiroshi Ohashi

    (Faculty of Economics, University of Tokyo)

Abstract

This 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 Info

Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-612.

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Length: 30 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:tky:fseres:2009cf612

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  1. Robert S. Pindyck & Julio J. Rotemberg, 1985. "Are Imports to Blame?: Attribution of Injury Under the 1974 Trade Act," NBER Working Papers 1640, National Bureau of Economic Research, Inc.
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  6. Ohashi, Hiroshi, 2002. "Anticipatory effects of voluntary export restraints: a study of home video cassette recorders market, 1978-86," Journal of International Economics, Elsevier, vol. 57(1), pages 83-105, June.
  7. Aviv Nevo, 2000. "A Practitioner's Guide to Estimation of Random-Coefficients Logit Models of Demand," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(4), pages 513-548, December.
  8. Kelly, Kenneth, 1988. "The Analysis of Causality in Escape Clause Cases," Journal of Industrial Economics, Wiley Blackwell, vol. 37(2), pages 187-207, December.
  9. Clerides, Sofronis, 2008. "Gains from trade in used goods: Evidence from automobiles," Journal of International Economics, Elsevier, vol. 76(2), pages 322-336, December.
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Cited by:
  1. Deborah L. Swenson, 2011. "The Influence of Chinese Trade Policy on Automobile Assembly and Parts," CESifo Working Paper Series 3615, CESifo Group Munich.

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