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Why would the US threaten punitive tariffs on luxury autos to implement a market share target in auto parts? We show that by making threats to a linked market, a market share may be implemented with fairly weak informa- tional and administrative requirements. Moreover, such policies can be both...
Persistent link: https://www.econbiz.de/10013309220
Regional trade agreements must specify domestic-content rules (rules of origin) that define the conditions under which a good qualifies as 'domestic' and so may be freely traded within the block. The paper analyzes such rules, focussing in particular on oligopolistic industries in which foreign...
Persistent link: https://www.econbiz.de/10013230380
only locally around equilibrium outcomes. Policy is needed because competition deters the socially optimal degree of …
Persistent link: https://www.econbiz.de/10012998414
charges. Taking this behavior into account, we estimate an equilibrium model of dealer price setting and lender competition …
Persistent link: https://www.econbiz.de/10013406873
We study the innovation and diffusion of technology at the industry level. We derive the full dynamic paths of an …
Persistent link: https://www.econbiz.de/10014091108
; (2) There is no relationship between competition and innovation at the industry level in the steady state. As the …We study the relationship between market structure and innovation in the global automobile industry from 1982 to 2004 … using the dynamic industry framework of Ericson and Pakes (1995). Firms optimally choose a continuous level of innovation in …
Persistent link: https://www.econbiz.de/10013143775
innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 … tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers … and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow …
Persistent link: https://www.econbiz.de/10013064941
In this paper we calculate and analyze the automobile industries cost and productivity experience during the 1970 's in Canada, the U.S.and Japan. Utilizing an econometric cost function methodology, we are able to isolate the major source of short-run disequilibrium in this industry-variations'...
Persistent link: https://www.econbiz.de/10012755399
We have assessed the determinants of the choice of integration, relational contracting (keiretsu sourcing) and market sourcing by seven Japanese automobile manufacturers (OEMs) with respect to 54 components in light of contract economics. Our major findings are the following. First, the...
Persistent link: https://www.econbiz.de/10012760108
We examine the sensitivity of simple calibration models of trade in imperfectly competitive industries to changes in model specification, as well as to changes in the calibration parameters. We find that not just the magnitude, but also the sign of the optimal trade policies is very sensitive to...
Persistent link: https://www.econbiz.de/10012760165