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Protection for Sale Made Easy

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  • Baldwin, Richard
  • Robert-Nicoud, Frédéric

Abstract

Formal analysis of the political economy of trade policy was substantially redirected by the appearance of Gene Grossman and Elhanan Helpman's 1994 paper, 'Protection for Sale'. Before that article a fairly wide range of approaches were favoured by various authors on various issues, but afterwards, the vast majority of theoretical tracts on endogenous trade policy have used the Protection for Sale framework (PFS for short) as their main vehicle. The reason, of course, is that the framework is both respectable - because its microfoundations are distinctly firmer than were those of the earlier lobbying approaches - and it is very easy to work with. Despite the popularity of the PFS framework, it appears that no one has presented a simple diagram that illustrates how the PFS frameworks and explains why it is so easy. This short note aims to remedy that omission.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5452.

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Date of creation: Jan 2006
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Handle: RePEc:cpr:ceprdp:5452

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Keywords: endogenous protection; protection for sale;

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  1. Michael Smart & Daniel M. Sturm, 2006. "Term limits and electoral accountability," LSE Research Online Documents on Economics 19771, London School of Economics and Political Science, LSE Library.
  2. Cuñat, Alejandro & Melitz, Marc J, 2007. "Volatility, Labour Market Flexibility, and the Pattern of Comparative Advantage," CEPR Discussion Papers 6297, C.E.P.R. Discussion Papers.
  3. Willem H. Buiter, 2007. "Seigniorage," LSE Research Online Documents on Economics 3322, London School of Economics and Political Science, LSE Library.
  4. Andrew.B Bernard & J. Bradford Jensen & Stephen Redding & Peter K. Schott, 2007. "Firms in international trade," LSE Research Online Documents on Economics 3682, London School of Economics and Political Science, LSE Library.
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Cited by:
  1. Richard E. Baldwin & Frederic Robert-Nicoud, 2002. "Entry and Asymmetric Lobbying: Why Governments Pick Losers," NBER Working Papers 8756, National Bureau of Economic Research, Inc.
  2. Baldwin, Richard, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," CEPR Discussion Papers 5775, C.E.P.R. Discussion Papers.
  3. Richard Baldwin, 2011. "Unilateral tariff liberalisation," Global COE Hi-Stat Discussion Paper Series gd10-159, Institute of Economic Research, Hitotsubashi University.

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