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

  • Taiju Kitano

    (National Graduate Institute for Policy Studies)

  • Hiroshi Ohashi

    (Faculty of Economics, University of Tokyo)

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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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2009/2009cf612.pdf
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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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