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Reconsidering the empirical evidence on the Grossman-Helpman model of endogenous protection

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  • Josh Ederington
  • Jenny Minier

Abstract

model of endogenous protection as the preëminent model in the political economy of trade literature has been significantly advanced by the finding that its predictions about the cross-industry pattern of protection are broadly consistent with the data. However, in their empirical implementation of the Grossman-Helpman model, researchers have assumed the presence of multiple policy instruments and extraneous political factors. We argue that incorporating these assumptions into the theory significantly changes its predictions about the cross-industry pattern of protection. JEL classification: F1

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 41 (2008)
Issue (Month): 2 (May)
Pages: 501-516

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Handle: RePEc:cje:issued:v:41:y:2008:i:2:p:501-516

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Cited by:
  1. Susumu Imai & Hajime Katayama & Kala Krishna, 2013. "A Quantile-based Test of Protection for Sale Model," Working Paper Series, Economics Discipline Group, UTS Business School, University of Technology, Sydney 12, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
  2. Enrico Marvasi, 2013. "Protection for Sale, Monopolistic Competition and Variable Markups," Working Papers - Economics wp2013_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  3. Ludema, Rodney D & Mayda, Anna Maria & Mishra, Prachi, 2010. "Protection for Free? The Political Economy of U.S. Tariff Suspensions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7926, C.E.P.R. Discussion Papers.
  4. Susumu Imai & Hajime Katayama & Kala Krishna, 2007. "Is Protection Really for Sale? A Survey and Directions for Future Research," Working Papers, Queen's University, Department of Economics 1151, Queen's University, Department of Economics.
  5. Fredriksson, Per & Mamun, Khawaja, 2009. "Tobacco Politics and Electoral Accountability in the United States," Working Papers 2009003, Sacred Heart University, John F. Welch College of Business.
  6. Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2008. "For Sale: Trade Policy in Majoritarian Systems," Working papers, University of Connecticut, Department of Economics 2008-20, University of Connecticut, Department of Economics.
  7. Etienne Farvaque & Gael Lagadec, 2009. "Electoral Control when Policies are for Sale," CESifo Working Paper Series 2522, CESifo Group Munich.

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