Pricing policy and quality upgrading in the Swedish car market: Do import surveillance and exchange rate instability matter?
Recent years have seen an increased use of quantitative restrictions in passenger car trade. In this paper we investigate the impact of import surveillance on product and pricing policies of car manufactures in the Swedish car market over the period 1986â€“1989. Evidence is found of substantal upgrading in Japanese (and German) car supply. The evidence on changes in quality-adjusted prices is less conclusive. In addition it is found that exchange rate changes were not passed through to car prices. Copyright Kluwer Academic Publishers 1991
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