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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 inuential Grossman and Helpman protection for salemodel of political economy might arise from a simpler setting. A model of imports and quotas with protection occuring 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.

Suggested Citation

  • Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2006. "Protection for Sale or Surge Protection?," Queen's Economics Department Working Papers 273590, Queen's University - Department of Economics.
    • Handle: RePEc:ags:quedwp:273590
    DOI: 10.22004/ag.econ.273590
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