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This paper identifies a new reason for giving preferences to the disadvantaged using a model of contests. There are two forces at work: the effort effect working against giving preferences and the selection effect working for them. When education is costly and easy to obtain (as in the U.S.),...
Persistent link: https://www.econbiz.de/10010333789
This paper looks at some consequences of a comittment to wage equality in some sectors of the economy which produce lumpy consumer goods. We show that in this setting, there are two equilibria, with high or low wages, incomes and output. In this closed economy, growth may be immiserizing. We...
Persistent link: https://www.econbiz.de/10010320948
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 occuring in response to import...
Persistent link: https://www.econbiz.de/10011940728
This paper proposes a new test of the Protection for Sale (PFS) model by Grossman and Helpman (1994). Unlike existing methods in the literature, our approach does not require any data on political organizations. We formally show that the PFS model provides the following prediction: In the...
Persistent link: https://www.econbiz.de/10011940746
This paper critically and selectively surveys the literature on protection for sale and discusses directions for future research in this area. It suggests that the standard approach needs to be augmented to provide more compelling tests of this model.
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