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Did US Safeguards Resuscitate Harley-Davidson in the 1980s?

Taiju Kitano and Hiroshi Ohashi ()
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Taiju Kitano: National Graduate Institute for Policy Studies

No CIRJE-F-612, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: This paper examines US safeguards applied to the motorcycle market in the 1980s. After receiving temporary protection by means of a maximum tariff of over 45%, Harley-Davidson sales recovered dramatically. Simulations, based on structural demand and supply estimates, indicate that while safeguard tariffs did benefit Harley-Davidson, they only account for a fraction of its increased sales. This is primarily because consumers perceived that Harley-Davidson and Japanese large motorcycles were poorly matched substitutes for each other. Our results provide little evidence that safeguard provisions triggered restructuring in Harley-Davidson.

Pages: 30 pages
Date: 2009-02
New Economics Papers: this item is included in nep-his, nep-lab and nep-mkt
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Journal Article: Did US safeguards resuscitate Harley-Davidson in the 1980s? (2009) Downloads
Working Paper: Did U.S. Safeguard Resuscitate Harley Davidson in the 1980s? (2007) Downloads
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