The extent and sources of cost and efficiency differences between U.S. and Japanese motor vehicle producers

In this paper we present estimates of cost and efficiency differences between U.S. and Japanese producers over the period 1970–1984 based on an econometric cost function methodology rather than on the financial accounting, plant inspection, and nonparametric index number frameworks usually used. Researchers who have used financial accounting and plant inspection data drawn from individual companies have obtained very different results …