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Does 'Protection for Sale' Apply to the US Food Industries?

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  • Rigoberto A. Lopez

Abstract

This paper tests the Protection for Sale model in terms of the structure of protection and how realistic the estimated domestic welfare weight is relative to campaign contributions. Using data from US food manufacturing, empirical results support the key predictions for the structure of protection when either all food manufacturing industries or most of the general population is assumed to be politically organised. The domestic welfare weight is estimated as low as 0.837, the lowest econometric estimate to date, underlining that protection is for sale and that, with a qualified 'yes', the model fits the data for these industries. Copyright 2008 The Author. Journal compilation 2008 The Agricultural Economics Society.

Suggested Citation

  • Rigoberto A. Lopez, 2008. "Does 'Protection for Sale' Apply to the US Food Industries?," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 25-40, February.
  • Handle: RePEc:bla:jageco:v:59:y:2008:i:1:p:25-40
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    References listed on IDEAS

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    10. Devashish Mitra & Dimitrios D. Thomakos & Mehmet Ulubaşoğlu, 2016. "Can we obtain realistic parameter estimates for the ‘protection for sale’ model?," World Scientific Book Chapters,in: The Political Economy of Trade Policy Theory, Evidence and Applications, chapter 10, pages 175-198 World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.

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