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Protection for sale or surge protection?

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  • Imai, Susumu
  • Katayama, Hajime
  • Krishna, Kala

Abstract

This paper asks whether the results obtained from using the standard approach to testing the influential Grossman and Helpman "protection for sale" model of political economy might arise from a simpler setting. A model of imports and quotas with protection occurring in response to import surges, but only for organized industries, is simulated and shown to provide parameter estimates consistent with the protection for sale framework. This suggests that the standard approach may be less of a test than previously thought.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 53 (2009)
Issue (Month): 6 (August)
Pages: 675-688

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Handle: RePEc:eee:eecrev:v:53:y:2009:i:6:p:675-688

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Web page: http://www.elsevier.com/locate/eer

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Keywords: Protection for sale Lobbying Political economy;

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References

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Citations

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Cited by:
  1. Marianna Belloc, 2014. "Neo-Protectionism and the European Lobbies," CESifo Working Paper Series 4832, CESifo Group Munich.
  2. Joseph Mai & Andrey Stoyanov, 2014. "The Effect of the Canada-US Free Trade Agreement on Canadian," Working Papers 2014_2, York University, Department of Economics.
  3. 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.
  4. Wilfred J. Ethier, 2006. "Selling Protection for Sale," PIER Working Paper Archive 06-014, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Jun 2006.
  5. Xenia Matschke, 2005. "Costly Revenue-Raising and the Case for Favoring Import-Competing Industries," CESifo Working Paper Series 1502, CESifo Group Munich.
  6. Ethier, Wilfred J., 2007. "The theory of trade policy and trade agreements: A critique," European Journal of Political Economy, Elsevier, vol. 23(3), pages 605-623, September.
  7. Tovar, Patricia, 2011. "Lobbying costs and trade policy," Journal of International Economics, Elsevier, vol. 83(2), pages 126-136, March.
  8. 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.
  9. Bradley J. McDonald & Christian Henn, 2011. "Protectionist Responses to the Crisis," IMF Working Papers 11/139, International Monetary Fund.
  10. Marianna Belloc, 2007. "Protection for Sale in the EU," Working Papers 100, University of Rome La Sapienza, Department of Public Economics.

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