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force separate from lobbying. The Grossman-Helpman model is extended to incorporate this effect and create a framework for …
Persistent link: https://www.econbiz.de/10014118413
In this paper we examine the empirical relevance of three prominent endogenous protection models. Is protection for sale, or do altruistic policy makers worry about political support? We find strong evidence that protection is indeed for sale. The important new result is, however, that not only...
Persistent link: https://www.econbiz.de/10011397792
I study welfare and distributional effects of import tariffs in a two-country asymmetric general oligopolistic equilibrium trade model. Tariffs have an anti-competitive effect that reduces labor demand because firms want to shorten supply. Unilaterally increasing the import tariff in absence of...
Persistent link: https://www.econbiz.de/10012300454
We analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens...
Persistent link: https://www.econbiz.de/10011398023
This paper provides new estimates of the effects of corruption and poor institutions on trade protection. It exploits data on several measures of trade protection including import duty, international trade taxes, and the trade-GDP ratio. The paper complements the literature on the relationship...
Persistent link: https://www.econbiz.de/10012730020
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...
Persistent link: https://www.econbiz.de/10012733666
In a model of strategic interaction between firms in lobbying activity, I show that capitalists might prefer tariffs … directions in the case of tariffs. If an industry association exists, coordination can be achieved when lobbying for tariffs, but …
Persistent link: https://www.econbiz.de/10014153028
nonlinear simultaneous equations system that is tightly linked to theory. We find that the theoretical model is broadly …
Persistent link: https://www.econbiz.de/10014052275
so by focusing on the use of lobbying for protection by import competing firms as a means to postpone costly product …, it will be optimal to adjust quality and to decrease the lobbying effort at some time, leading to liberalization and … technological catch-up. But then the equilibrium tariff will again be small and "cheap", and it will pay to start lobbying anew …
Persistent link: https://www.econbiz.de/10014057232
governments' valuations of political contributions, discount factors, the lobbying position of the specific-interest groups in the … protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby-supported FTA is more …
Persistent link: https://www.econbiz.de/10014069131