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Are U.S. Nontariff Barriers Retaliatory? An Application of Extreme Bounds Analysis in the Tobit Model

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  • Gawande, Kishore

Abstract

The extreme bounds analysis in Leamer (1982) is extended to the Tobit model with censoring. The extension involves the simple modification of replacing the censored values of the dependent variable by their expectation conditional on the MLEs and using the negative of the Hessian evaluated at the MLEs in place of the inverse of the covariance matrix. The application of this method to a data set that pools U.S. nontariff barriers across industries and countries arrives at the surprisingly robust (to changes in the prior) conclusion that U.S. nontariff barriers against its largest trading partners are already significantly retaliatory. Copyright 1995 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 77 (1995)
Issue (Month): 4 (November)
Pages: 677-88

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Handle: RePEc:tpr:restat:v:77:y:1995:i:4:p:677-88

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Hadi Salehi Esfahani & Stephanie Leaphart, 2000. "Estimating Trade Policy Models: An Empirical Study of Protection Policy in Turkey," Econometric Society World Congress 2000 Contributed Papers 0563, Econometric Society.
  2. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
  3. Gawande, Kishore, 1997. "US non-tariff barriers as privately provided public goods," Journal of Public Economics, Elsevier, vol. 64(1), pages 61-81, April.
  4. Xenia Matschke, 2005. "Costly Revenue-Raising and the Case for Favoring Import-Competing Industries," CESifo Working Paper Series 1502, CESifo Group Munich.
  5. Ghosh, Sucharita & Yamarik, Steven, 2004. "Are regional trading arrangements trade creating?: An application of extreme bounds analysis," Journal of International Economics, Elsevier, vol. 63(2), pages 369-395, July.
  6. Gawande, Kishore, 1997. "Generated regressors in linear and nonlinear models," Economics Letters, Elsevier, vol. 54(2), pages 119-126, February.

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