TY - JOUR AU - Levinsohn, James TI - CARWARS: Trying to Make Sense of U.S.-Japan Trade Frictions in the Automobile and Automobile Parts Markets JF - National Bureau of Economic Research Working Paper Series VL - No. 5349 PY - 1995 Y2 - November 1995 DO - 10.3386/w5349 UR - http://www.nber.org/papers/w5349 L1 - http://www.nber.org/papers/w5349.pdf N1 - Author contact info: James A. Levinsohn Yale School of Management PO Box 208200 New Haven, CT 06520 Tel: 734/763-2319 Fax: 734/764-2769 E-Mail: James.Levinsohn@yale.edu M1 - published as James Levinsohn. "Carwars: Trying to Make Sense of U.S.-Japan Trade Frictions in the Automobile and Automobile Parts Markets," in Robert C. Feenstra, editor, "The Effects of U.S. Trade Protection and Promotion Policies" University of Chicago Press (1997) AB - This paper tries to make sense of the recent trade dispute between the U.S. and Japan in autos and auto parts. The paper argues that there are structural differences between the way that the auto industries are organized in the U.S. and Japan, and that these differences have contributed to the growing bilateral trade deficit in auto parts. The paper also provides econometric estimates of what would have happened had the threatened 100 percent tariff on Japanese luxury cars not been withdrawn by the U.S. ER -