Trade policy in majoritarian systems: the case of the U.S
AbstractWe provide a theory of trade policy determination that incorporates the protectionist bias inherent in majoritarian systems, suggested by Grossman and Helpman (2005). The prediction that emerges is that in majoritarian systems, the majority party favours industries located disproportionately in majority districts. We test this prediction using U.S. data on tariffs, Congressional campaign contributions, and industry location in districts represented by the majority party over the period 1989-97. We find evidence of a significant majority bias in trade policy: the benefit to being represented by the majority party appears at least as large in magnitude as the benefit to lobbying.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 44 (2011)
Issue (Month): 2 (May)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Other versions of this item:
- Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2011. "Trade Policy in Majoritarian Systems: The Case of the U.S," Research Papers in Economics 2011-01, University of Trier, Department of Economics.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Celik, Levent & Karabay, Bilgehan & McLaren, John, 2013.
"Trade policy-making in a model of legislative bargaining,"
Journal of International Economics,
Elsevier, vol. 91(2), pages 179-190.
- Levent Celik & Bilgehan Karabay & John McLaren, 2011. "Trade Policy Making in a Model of Legislative Bargaining," NBER Working Papers 17262, National Bureau of Economic Research, Inc.
- Giacomo Ponzetto, 2011.
"Heterogeneous Information and Trade Policy,"
596, Barcelona Graduate School of Economics.
- Giacomo A. M. Ponzetto, 2011. "Heterogeneous Information and Trade Policy," 2011 Meeting Papers 189, Society for Economic Dynamics.
- Ponzetto, Giacomo AM, 2011. "Heterogeneous Information and Trade Policy," CEPR Discussion Papers 8726, C.E.P.R. Discussion Papers.
- Giacomo A. M. Ponzetto, 2008. "Heterogeneous information and trade policy," Economics Working Papers 1296, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2011.
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