Gains from Trade in Differentiated Products: Japanese Compact Trucks

27 Pages Posted: 3 May 2004

See all articles by Robert C. Feenstra

Robert C. Feenstra

University of California, Davis - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: July 1986

Abstract

We present a methodology for estimating the welfare gains from a productwith new characteristics, and apply it to Japanese and American compacttrucks. Our approach can be used on any products for which a hedonicregression can be estimated. For 1979-80 we find average welfare gains of$500-600 per Japanese truck. In later years the benefit to consumers isreduced by the tariff on imports and the introduction of American compactmodels. American compacts have consumer gains which are much less than theaverage for Japanese models, since for each American compact there is animport with very similar characteristics.

Suggested Citation

Feenstra, Robert C., Gains from Trade in Differentiated Products: Japanese Compact Trucks (July 1986). NBER Working Paper No. w1978. Available at SSRN: https://ssrn.com/abstract=344786

Robert C. Feenstra (Contact Author)

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
916-752-9240 (Phone)
916-752-9382 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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