This book, originally published in 1994, explores the effects of
federal policies on the US auto industry in the 1970s and 80s which
were designed to save jobs and help the domestic industry become
more competitive. The author develops a new model based on modern
oliopoly theory to estimate the effects of the voluntary Restraint
Agreements (which limited Japanese imports) on the US auto market.
The results demonstrate that VRAs caused price increases which
adversely affected the comptitiveness of US producers. On the eve
of a new Trump administration, and the likelihood of new
restrictions on imports to boost US manufacturing, this book has
particular enduring relevance.
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