Journal article
Free entry in the Indian automobile industry: a calibration model
The journal of international trade & economic development, v 8(4), pp 437-455
01 Dec 1999
Abstract
We examine the implications of free entry in the Indian automobile industry in a model that is calibrated to the Indian market using price, cost and production data from 1993 and 1994. In particular, we consider the effect that free entry has on prices, production levels and welfare. We have two main findings. First, that despite the experiences of other countries, free entry is a desirable policy in this market. Second, that the excise tax of 40 per cent levied on automobiles does not seem to have a major adverse impact on welfare.
Metrics
21 Record Views
Details
- Title
- Free entry in the Indian automobile industry: a calibration model
- Creators
- Paul E Jensen - Drexel UniversityKala Krishna - Pennsylvania State University
- Publication Details
- The journal of international trade & economic development, v 8(4), pp 437-455
- Publisher
- Routledge
- Number of pages
- 19
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business
- Scopus ID
- 2-s2.0-0033380046
- Other Identifier
- 991020172700804721