Abstract
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 organization. We use quantile and IV quantile regressions in our tests, using the data from Gawande and Bandyopadhyay (2000). Surprisingly, the results do not provide any evidence favoring the PFS model. We also explain why previous work may have found support for it.
Original language | English |
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Pages (from-to) | 40-52 |
Number of pages | 13 |
Journal | Journal of International Economics |
Volume | 91 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2013 Sept |
Keywords
- Lobbying
- Political economy
- Protection for sale
- Quantile regression
ASJC Scopus subject areas
- Finance
- Economics and Econometrics