Resiandini, Pramesti (2012): Japanese and Korean Automobile Exports and the Alchian-Allen Theorem.
Download (126kB) | Preview
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:||25 Feb 2017 16:33|
Alchian, Arment A. and William R. Allen. 1964. University Economics. Belmont, Wadsworth Publishing Co.
Banik, Nilanjan and Basudeb Biswas. 2007. Exchange rate pass-through in the U.S. automobile market: a cointegration approach. International Review of Economics and Finance, 16, pp. 223-236.
Bauman, Yoram. 2004. Shipping the good apples out: a new perspective. Economic Inquiry,42, pp. 534-536.
Borcherding, Thomas E. and Eugene Silberberg. 1978. Shipping the good apples out: the Alchian and Allen theorem reconsidered. The Journal of Political Economy, 95(1), pp. 131-138.
Bureau of Economic Analysis. 2009. The U.S. National Economic Accounts. http://www.bea.gov/National/index.htm.
Bureau of Labor Statistics. 2009. Consumer Price Index – All Urban Consumers (CPI-U). http://www.bls.gov/CPI/data.htm.
FactSet Research Systems. 2010. Baltic Dry Index (BDI-BAX).
Federal Reserve Bank of New York. 2009. Foreign Exchange, Historical Data. http://www.newyorkfed.org/markets/foreignex.html.
Hummels, David and Alexandra Skiba. 2002. Shipping the good apples out? An empirical confirmation for the Alchian-Allen conjecture. NBER Working Paper, 9023.
Hummels, David and Alexandra Skiba. 2004. Shipping the good apples out? An empirical confirmation for the Alchian-Allen conjecture. Journal of Political Economy, 112(6), pp. 1384-1402.
Katzner, Donald W. and Mikail J. Nikomarov. 2008. Exercises in futility. The Japanese Economy, 35, pp. 29-58.
Kilian, Lutz. 2009. Not all price shocks are alike: distangling demand and supply shocks in the crude oil market. American Economic Review, 99(3), pp. 1053-1069.
Silberberg, Eugene and Wing Suen. 2001. The Structure of Economics: A Mathematical Analysis (3rd ed.). McGraw-Hill, New York.
Stock, James H. and Mark W. Watson. 1993. A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica, 61(4), pp. 783-820.
Tharp, Mike. 1981. U.S., Japan in car pact. New York Times, May 1, 1981, A1.
United States Department of Energy Energy Information Administration. 2009. World Crude Oil Prices. http://www.eia.doe.gov/
United States International Trade Commission. 2009-2012. Interactive Tariff and Trade Database. http://dataweb.usitc.gov/