Quality Change under Trade Restraints in Japanese Autos
In this paper, the author investigates the quality change in Japanese car and truck imports over 1979-85. Car im ports have been subject to a quota restraint since April 1981, while compact trucks have faced an ad valorem tariff of 25 percent since Au gust 1980. He finds evidence of substantial upgrading in Japanese car imports, with ambiguous quality change in trucks. The welfare cost o f the quota restraint in cars exceeds $1,000 per import in 1983 and 1 984. Copyright 1988, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Volume (Year): 103 (1988)
Issue (Month): 1 (February)
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