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Protection for Sale Made Easy

  • Baldwin, Richard
  • Robert-Nicoud, Frédéric

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
Date of revision:
Handle: RePEc:cpr:ceprdp:5452
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  1. Willem H. Buiter, 2007. "Seigniorage," LSE Research Online Documents on Economics 19733, London School of Economics and Political Science, LSE Library.
  2. Michael Smart & Daniel M. Sturm, 2006. "Term Limits and Electoral Accountability," CEP Discussion Papers dp0770, Centre for Economic Performance, LSE.
  3. Alejandro Cuñat & Marc J. Melitz, 2007. "Volatility, Labor Market Flexibility, and the Pattern of Comparative Advantage," CEP Discussion Papers dp0799, Centre for Economic Performance, LSE.
  4. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," NBER Working Papers 13054, National Bureau of Economic Research, Inc.
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