NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Voluntary Export Restraints on Automobiles: Evaluating a Strategic TradePolicy

Steven Berry, James Levinsohn, Ariel Pakes

NBER Working Paper No. 5235
Issued in August 1995
NBER Program(s):   IO   ITI   PR

In May, 1981, a voluntary export restraint (VER) was placed on exports of automobiles from Japan to the United States. As trade policies go, this one was important. At about the same time, though to much less fanfare, international trade theorists were obtaining (then) startling results from models of international trade in imperfectly competitive markets. These models suggested that in imperfectly competitive markets, an activist trade policy might enhance national welfare. In this paper, we provide some empirical evidence on whether these new theoretical possibilities might actually apply to the policy of VERs.

download in pdf format
   (726 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5235

Published: American Economic Review, Vol.89, no. 3 (1999): 400-430.

Users who downloaded this paper also downloaded* these:
Grossman and Helpman w4149 Protection For Sale
Berry, Levinsohn, and Pakes w4264 Automobile Prices in Market Equilibrium: Part I and II
Tornell w6084 Rational Atrophy: The US Steel Industry
Grossman and Helpman w4597 The Politics of Free Trade Agreements
Feenstra Voluntary Export Restraint in U.S. Autos, 1980-81: Quality, Employment, and Welfare Effects
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us