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

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Author Info
Josh Ederington
Jenny Minier

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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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File URL: http://economics.ca/cgi/xms?jab=v41n2/CJEv41n2p0501.pdf
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Publisher 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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F1 - International Economics - - Trade

Cited by:
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  1. Susumu Imai & Hajime Katayama & Kala Krishna, 2008. "Is Protection Really for Sale? A Survey and Directions for Future Research," NBER Working Papers 13899, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Susumu Imai & Hajime Katayama & Kala Krishna, 2008. "A Quantile-based Test of Protection for Sale Model," NBER Working Papers 13900, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2008. "For Sale: Trade Policy in Majoritarian Systems," Working papers 2008-20, University of Connecticut, Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-25.


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