Working Paper: NBER ID: w12258
Authors: Susumu Imai; Hajime Katayama; Kala Krishna
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: Protection for Sale; Political Economy; Trade Policy
JEL Codes: F13; D72; B41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Political organization (F53) | Protection levels (D18) |
| Organized industries (L69) | Protection levels (D18) |
| Import surges (F14) | Protection levels (D18) |
| Political organization (F53) | Organized industries (L69) |
| PFS model predictions (E17) | Parameter estimates (C51) |