Protection for Sale or Surge Protection?

42 Pages Posted: 17 May 2006

See all articles by Susumu Imai

Susumu Imai

Queen's University - Department of Economics

Hajime Katayama

Waseda University - School of Commerce

Kala Krishna

Pennsylvania State University - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: March 2006

Abstract

This paper asks whether the results obtained from using the standard approach to testing the influential Grossman and Helpman protection for sale (PFS) 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.

Keywords: Menu Auctions, Political Economy, Testing Protection for Sale

JEL Classification: F13, D72, B41

Suggested Citation

Imai, Susumu and Katayama, Hajime and Krishna, Kala, Protection for Sale or Surge Protection? (March 2006). Available at SSRN: https://ssrn.com/abstract=901760 or http://dx.doi.org/10.2139/ssrn.901760

Susumu Imai

Queen's University - Department of Economics ( email )

99 University Avenue
Kingston K7L 3N6, Ontario
Canada

HOME PAGE: http://qed.econ.queensu.ca/pub/faculty/imai/

Hajime Katayama

Waseda University - School of Commerce ( email )

School of Commerce, Waseda University
1-6-1 Nishi-Waseda Shinjyuku-ku
Tokyo, Tokyo 169 - 8050
Japan

Kala Krishna (Contact Author)

Pennsylvania State University - Department of Economics ( email )

523 Kern Graduate Building
University Park, PA 16802-3306
United States
814-865-1106 (Phone)
814-863-4775 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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