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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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File URL: http://www.sciencedirect.com/science/article/B6V64-4VTVR2V-1/2/fa2e1421a51851b3e30f4fd24c6ea7b9
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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

Related research

Keywords: Protection for sale Lobbying Political economy;

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References

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  1. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2010. "A Quantile-based Test of Protection for Sale Model," CCES Discussion Paper Series 34, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
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Citations

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Cited by:
  1. Susumu Imai & Hajime Katayama & Kala Krishna, 2007. "Is Protection Really for Sale? A Survey and Directions for Future Research," Working Papers 1151, Queen's University, Department of Economics.
  2. Wilfred J. Ethier, 2002. "The Theory of Trade Policy and Trade Agreements: A Critique," PIER Working Paper Archive 06-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 05 Jun 2006.
  3. Susumu Imai & Hajime Katayama & Kala Krishna, 2007. "A Quantile Based Test of Protection for Sale Model," Working Papers 1132, Queen's University, Department of Economics.
  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," Working papers 2005-28, University of Connecticut, Department of Economics, revised Apr 2007.
  6. Bradley J. McDonald & Christian Henn, 2011. "Protectionist Responses to the Crisis," IMF Working Papers 11/139, International Monetary Fund.
  7. 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.
  8. Tovar, Patricia, 2011. "Lobbying costs and trade policy," Journal of International Economics, Elsevier, vol. 83(2), pages 126-136, March.
  9. 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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