Article ID Journal Published Year Pages File Type
5067362 European Economic Review 2009 14 Pages PDF
Abstract

This paper asks whether the results obtained from using the standard approach to testing the influential Grossman and Helpman “protection for sale” model of political economy might arise from a simpler setting. A model of imports and quotas with protection occurring 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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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