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Author:Klier, Thomas H. 

Journal Article
The geographic evolution of the U.S. auto industry (pt. 1)

The authors examine changes in the footprint of the auto industry in the United States, starting in 1980 and tracking them through 2003. Their formal analysis of assembly and supplier plant locations traces the reorientation of the auto region from one that extends east?west to one that stretches north?south over this period. To accommodate the large size of the file and the number of illustrations, the article has been divided into two smaller files.
Economic Perspectives , Volume 30 , Issue Q II , Pages 2-6

Headquarters wanted: principals only need apply

Chicago Fed Letter , Issue Jul

Working Paper
New vehicle characteristics and the cost of the corporate average fuel economy standard

Recent legislation has increased the Corporate Average Fuel Economy (CAF) standard by 40 percent, which represents the first major increase in the standard since its creation in 1975. Previous analysis of the CAF standard has focused on the short run effects, in which vehicle characteristics are held fixed, or the long run, when firms can adopt new powertrain technology. This paper focuses on the medium run, when firms can choose characteristics such as weight and power, and have a limited ability to adopt engine technology. We first document the historical importance of the medium run and ...
Working Paper Series , Paper WP-08-13

Journal Article
Agglomeration in the U.S. auto supplier industry

Analysis of a large set of plant-level data shows the auto supplier industry to be highly spatially concentrated. Data on location of the plants' customers, however, suggest that immediate proximity to assembly plant is not necessary, despite a production system that emphasized low inventories and tight linkages.
Economic Perspectives , Volume 23 , Issue Q I , Pages 18-34

The Great Lakes border economy

Chicago Fed Letter , Issue Jul

Challenges to the U.S. auto industry

Chicago Fed Letter , Issue Mar

Journal Article
Mexico’s Growing Role in the Auto Industry Under NAFTA: Who Makes What and What Goes Where

In this article, we explore the impact of NAFTA on Mexico?s motor vehicle industry?specifically, on Mexico?s integration into North America?s automotive industry and the subsequent increase in intra-industry trade in automobiles.5 The auto industry has undergone dramatic changes over the past 20-plus years. First, we provide a brief summary of the history of auto production and related trade policies in Mexico before NAFTA. Then we provide a detailed analysis of Mexico?s light vehicle production and exports from 1990 through 2016. Our analysis shows how Mexico has become an integral part of ...
Economic Perspectives , Issue 6 , Pages 1-29

Journal Article
The geography of lean manufacturing: recent evidence from the U.S. auto industry

Economic Perspectives , Volume 19 , Issue Nov

Recent Trends in Capital Accumulation and Implications for Investment

Business investment has been fairly low over the past several years. As a result, the growth in the stock of capital has not kept up with the growth in gross domestic product (GDP) or employment. This Chicago Fed Letter studies these recent trends and discusses their implications for future investment.
Chicago Fed Letter

Working Paper
Evolving agglomeration in the U.S. auto supplier industry

Using nonparametric descriptive tools developed by Duranton and Overman (2005), we show that both new and old auto supplier plants are highly concentrated in the eastern United States. Conditional logit models imply that much of this concentration can be explained parametrically by distance from Detroit, proximity to assembly plants, and access to the interstate highway system. New plants are more likely to be located in zip codes that are close to existing supplier plants. However, the degree of clustering observed is still greater than implied by the logit estimates.
Working Paper Series , Paper WP-06-20



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