Resiandini, Pramesti (2012): Japanese and Korean Automobile Exports and the Alchian-Allen Theorem.
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This paper compares data on Japanese and Korean automobile exports to the United States to examine consistency with the Alchian-Allen theorem. The theorem suggests that imposing a per unit charge such as transport cost will lower the relative price and increase the relative consumption of higher quality cars. Results show that the relative price of higher-quality cars is not necessarily lower with increased shipping costs, measured by CIF charges (cost, insurance, and freight). A possible explanation is that insurance and other shipping charges are imposed based on the car price, and these charges reduce or eliminate the Alchian-Allen effect of per-unit freight charge.
|Item Type:||MPRA Paper|
|Original Title:||Japanese and Korean Automobile Exports and the Alchian-Allen Theorem|
|Keywords:||International Trade; Transport Costs; Alchian-Allen Theorem; Dynamic OLS|
|Subjects:||F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade|
|Depositing User:||Pramesti Resiandini|
|Date Deposited:||16. Oct 2012 08:46|
|Last Modified:||15. Feb 2013 19:46|
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