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.


chapter I|6 pages


chapter II|32 pages

Background and Literature Review

chapter III|10 pages

The Model

chapter IV|24 pages

Data Generation and Historical Analysis

chapter V|40 pages

Model Estimation

chapter VI|26 pages

Simulation and Policy Analysis

chapter VII|18 pages

Public Policy for the Auto Industry