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Child safety in automobiles became an important safety issue during the 1970s. It was recognized that children needed their own specific restraint systems and that unrestrained children were particularly susceptible to serious injuries, in particular head injury. As a result performance standards for child restraints were issued by the federal government while states passed child restraint use laws. This study examined the cost per life year saved for child restraints which were in use in 1987. These costs are likely to be overestimated since the analysis did not consider the benefits from injury reduction, the quality of the life year saved and the effect of the child's death on remaining family members. The discount rate had a major impact on the cost per life year saved due to the long life expectancy of young children. It was concluded that child restraints were cost effective though problems of misuse and nonuse remained.

The purpose of this paper was to investigate the impact of household characteristics and preferences for Japanese cars on the demand for small cars in the United States. Two stage probit analysis was used to examine the impact of various explanatory variables on the purchase decision. The results indicated that preferences for Japanese cars, income, price and several household characteristics had a significant impact on the probability of purchasing a small car. The results of this study provide support for freer trade in automobiles and higher gasoline taxes as energy conservation strategies.

Consumption is the sole end and purpose of all production; and the interest of the producer ought to be attended to only so far as it may be necessary for promoting that of the consumer. The maxim is so perfectly self-evident that it would be absurd to attempt to prove it. But in the mercantile system the interest of the consumer is almost constantly sacrificed to that of the producer; and it seems to consider production and not consumption, as the ultimate end and object of all industry and commerce. In the restraints upon the importation of all foreign commodities which can come into competition with those of our own growth or manufacture, the interest of the home consumer is evidently sacrificed to that of the producer. It is altogether for the benefit of the latter that the former is obliged to pay that enhancement of price which this monopoly almost always occasions (Adam Smith, 1952, pp. 287–289).

The purpose of this paper is to examine trade policy changes in OECD countries in the past decade and the impact of such changes on producers and consumers. Consideration is given to trade policy objectives as well as the impact of trade policies on foreign suppliers and domestic export industries in evaluating the potential benefits from protection. The results indicate that trade protection imposes high costs on the consumer and the domestic economy. The costs include higher prices, the reduction in consumer choice, and the decline in a competitive environment for domestic industries. In many instances trade protection means that consumers subsidize both domestic and foreign producers. In contrast trade protection faces severe limitations in achieving its twin objectives of job preservations and industry modernization due to supplier response in domestic and foreign countries.

The purpose of this paper is to examine the history of motor carrier regulation in the United States and to assess the potential benefits and costs to consumers from deregulation of trucking in 1980. Benefits are based on the impact of increased competition and changes in operating restrictions on rates and logistics cost savings while costs are based on changes in highway safety due to the impact of deregulation on truck maintenance, truck driver behavior, and changes in the motor vehicle mix. The results of this study indicate that the partial deregulation of trucking in 1980 entailed considerable benefits due to the relaxation of entry restrictions and changes in operating restrictions. Average annual logistics cost savings were $38 billion from 1981 to 1986. It was concluded that the direct effect of deregulation on highway safety was favorable indicating that truck safety and truck driver behavior had improved under deregulation. However, deregulation had a positive effect on the proportion of miles driven by trucks which, in turn, had a positive effect on fatality rates. Thus, the indirect effect of deregulation was unfavorable. These results suggest that the driving environment, rather than the truck or truck driver, may play a major role in highway safety under deregulation. The need to monitor the adequacy of the existing road system is also reinforced by recent increases in the speed limit from 55 mph to 65 mph in many states.

The loss incurred by U.S. apparel consumers in 1980 due to higher prices from tariffs and quotas was estimated. The price impact of tariffs was based on the ad valorem tariff rate while the price impact of quotas was based on estimated price differences between domestic and imported apparel at the same U.S. distribution level. Consumer losses in 1980 ranged from $10 billion to $12 billion depending on the price elasticity of demand for apparel and whether consumers or distributors received the scarcity rent generated by quotas. The increase in consumer expenditures due to higher prices accounted for the greatest proportion of consumer losses and ranged from 23% to 25% of total consumer expenditures for apparel depending on the allocation of the scarcity rent. While a reduction in trade restrictions would benefit consumers, such a reduction would also impose losses on firms and workers in the domestic apparel industry. However, there are other strategies for meeting competition from imports that would benefit producers as well as consumers.