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Project Citation: 

Wollmann, Thomas G. Replication data for: Trucks without Bailouts: Equilibrium Product Characteristics for Commercial Vehicles. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113146V1

Project Description

Summary:  View help for Summary The entry and exit of products, rather than firms, serve as the main equilibrating force in many markets, so accurately predicting changes from a merger or bankruptcy should incorporate this behavior. This paper estimates a structural model of the US commercial vehicle market and demonstrates the importance of allowing for endogenous product offerings in the context of the $85 billion automotive industry bailout in 2009. Under alternate policies that facilitate an acquisition or liquidation of GM and Chrysler, product entry and exit moderate markup increases and output decreases by up to three-quarters.

Scope of Project

JEL Classification:  View help for JEL Classification
      D22 Firm Behavior: Empirical Analysis
      G33 Bankruptcy; Liquidation
      G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
      H81 Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
      L13 Oligopoly and Other Imperfect Markets
      L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment


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