TY - JOUR
T1 - Can we obtain realistic parameter estimates for the 'protection for sale' model?
AU - Mitra, Devashish
AU - Thomakos, Dimitrios D.
AU - Ulubaşoǧlu, Mehmet
N1 - Copyright:
Copyright 2019 Elsevier B.V., All rights reserved.
PY - 2006/2
Y1 - 2006/2
N2 - In the Grossman and Helpman (1994) model of endogenous trade protection, sectoral lobbies try to influence an incumbent government that maximizes a weighted sum of political contributions and aggregate welfare. We empirically investigate this model using U.S. and Turkish data. Our specification is more tightly tied to theory than those in existing studies. Additionally, we assume all specific-factor owners to be organized into different lobbies. These changes, validated by hypothesis tests, yield more realistic parameter estimates of the government's concern for aggregate welfare and of the fraction of population organized into lobbies.
AB - In the Grossman and Helpman (1994) model of endogenous trade protection, sectoral lobbies try to influence an incumbent government that maximizes a weighted sum of political contributions and aggregate welfare. We empirically investigate this model using U.S. and Turkish data. Our specification is more tightly tied to theory than those in existing studies. Additionally, we assume all specific-factor owners to be organized into different lobbies. These changes, validated by hypothesis tests, yield more realistic parameter estimates of the government's concern for aggregate welfare and of the fraction of population organized into lobbies.
UR - http://www.scopus.com/inward/record.url?scp=33644879192&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33644879192&partnerID=8YFLogxK
U2 - 10.1111/j.0008-4085.2006.00344.x
DO - 10.1111/j.0008-4085.2006.00344.x
M3 - Article
AN - SCOPUS:33644879192
SN - 0008-4085
VL - 39
SP - 187
EP - 210
JO - Canadian Journal of Economics
JF - Canadian Journal of Economics
IS - 1
ER -