DP20525 The Long-Lasting Protection of a Defunct Industrial Policy

Uniunea Europeana

The Spanish industrial policy prohibited automobiles imports from 1939 to 1986, when Spain joined the European Union. Despite trading freely with other European countries ever since, Spaniards still show a strong preference for automobile brands with production facilities established in Spain during the autarkic period. We specify a multi-product oligopoly equilibrium model and jointly estimate demand and supply. This rich framework allows us to quantify the current tariff equivalence of these

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