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 favors 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 InfoPaper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2011-01.
Length: 35 pages
Date of creation: 2011
Date of revision:
trade policy; majority bias; political economy;
Other versions of this item:
- Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2011. "Trade policy in majoritarian systems: the case of the U.S," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 44(2), pages 607-626, May.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- 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.
- Celik, Levent & Karabay, Bilgehan & McLaren, John, 2013. "Trade policy-making in a model of legislative bargaining," Journal of International Economics, Elsevier, Elsevier, vol. 91(2), pages 179-190.
- Giacomo A. M. Ponzetto, 2011.
"Heterogeneous Information and Trade Policy,"
2011 Meeting Papers, Society for Economic Dynamics
189, Society for Economic Dynamics.
- Giacomo A. M. Ponzetto, 2008. "Heterogeneous information and trade policy," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 1296, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2011.
- Ponzetto, Giacomo AM, 2011. "Heterogeneous Information and Trade Policy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8726, C.E.P.R. Discussion Papers.
- Giacomo Ponzetto, 2011. "Heterogeneous Information and Trade Policy," Working Papers 596, Barcelona Graduate School of Economics.
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