ABSTRACT

This chapter discusses the data collected and variables generated and summarizes and interprets some of the more interesting historical data. The three main data are: macroeconomic variables, auto prices and output levels, and factor costs. The major macroeconomic data series used in this study were all obtained from Citibase: Citibank Economic Database, a machine readable secondary source. The developing price and output series was to classify the models built by US-based assemblers into size/quality-classes. Labor contracts in the auto industry generally cover a period of certain model years, and wages and benefits are usually adjusted once each year under terms of the contract. The total cost of labor to the manufacturer includes direct wages, fringe benefits and social security contributions. The pricing behavior of the domestic auto makers in 1986 illustrates the important effect that market structure can have on trade and output patterns. When the cost of imports rose, so did domestic prices.