CIRJE-F-612 "Did US Safeguards Resuscitate Harley-Davidson in the 1980s?"
Author Name Kitano, Taiju and Hiroshi Ohashi
Date February 2009
Full Paper PDF file
Remarks Forthcoming in Journal of International Economics 79(2), 186-197 (2009).
Abstract

This paper examines US safeguards applied to the motorcycle market in the 1980s. After receiving temporary protection by means of a maximum tariff of over 45%, Harley-Davidson sales recovered dramatically. Simulations, based on structural demand and supply estimates, indicate that while safeguard tariffs did benefit Harley-Davidson, they only account for a fraction of its increased sales. This is primarily because consumers perceived that Harley-Davidson and Japanese large motorcycles were poorly matched substitutes for each other. Our results provide little evidence that safeguard provisions triggered restructuring in Harley-Davidson.