Modelling Price Behaviour in the European Car Market: 1970-1985

Yves Mertens

STICERD - Economics of Industry Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: This paper is concerned with the determinants of car prices in four European countries: Belgium, France, Germany and the United Kingdom, over the period 1970-1985. The main focus of the study lies in explaining the levels of, and the changes in, the large price differentials observed across the several countries, and in exploring the impact of the trade restrictions imposed on Japanese car exports to Europe over the period in question. The main finding is that these two sources of price differentials play a substantive role in explaining observed differentials. The second major theme relates to the effects of the increase of Japanese import penetration and the resulting trade restrictions.

Keywords: European car market; car prices; price differentials; trade restrictions. (search for similar items in EconPapers)
Date: 1990-03
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Citations: View citations in EconPapers (3)

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