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Protection for sale made easy

  • Richard E. Baldwin
  • Frédéric Robert-Nicoud

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 ommission.

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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 19713.

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Length: 12 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:ehl:lserod:19713
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  1. Alejandro Cunat & Marc J. Melitz, 2007. "Volatility, labor market flexibility, and the pattern of comparative advantage," LSE Research Online Documents on Economics 19714, London School of Economics and Political Science, LSE Library.
  2. Buiter, Willem H., 2007. "Seigniorage," Economics Discussion Papers 2007-8, Kiel Institute for the World Economy.
  3. Michael Smart & Daniel Sturm, 2004. "Term limits and electoral accountability," Economic History Working Papers 20283, London School of Economics and Political Science, Department of Economic History.
  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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