Gains from Trade in Differentiated Products: Japanese Compact Trucks / Robert C. Feenstra.

Format:

Book

Author/Creator:

Feenstra, Robert C.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1978.

NBER working paper series no. w1978

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Gains from Trade in Differentiated Products

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Summary:

We present a methodology for estimating the welfare gains from a product

with new characteristics, and apply it to Japanese and American compact

trucks. Our approach can be used on any products for which a hedonic

regression can be estimated. For 1979-80 we find average welfare gains of

$500-600 per Japanese truck. In later years the benefit to consumers is

reduced by the tariff on imports and the introduction of American compact

models. American compacts have consumer gains which are much less than the

average for Japanese models, since for each American compact there is an

import with very similar characteristics.

Notes:

Print version record

July 1986.