Dong Cheng, Mario Crucini, Hyunseung Oh, Hakan Yilmazkuday, 08 November 2019

As the current narrative goes, the loss of US manufacturing jobs is due to competition from China and one way to get the jobs back is by running tariffs up the proverbial flagpole.  This column argues that in the case of the automobile industry, history shows exactly the opposite occurred. In the early 20th century, the US achieved exceptionalism in innovation, production and trade in automobiles without domestic tariff protection, while foreign nations languished behind high tariff walls designed to protect their fledgling domestic automobile industries. 

Rüdiger Bachmann, Gabriel Ehrlich, Dimitrije Ruzic, 24 January 2018

There has been limited research on how groups’ collective reputations are affected by the misbehaviour of individual members. This column uses the Volkswagen emissions scandal as a natural experiment to explore group reputation externalities. German auto manufacturers that weren’t implicated in the scandal suffered significant declines in sales, stock returns, and public sentiment in the US. Volkswagen’s malfeasance appeared to materially harm the group reputation of German car engineering.

Vox eBooks

Events

CEPR Policy Research