Reconsidering the empirical evidence on the Grossman‐Helpman model of endogenous protection
J Ederington, J Minier - Canadian Journal of Economics/Revue …, 2008 - Wiley Online Library
Canadian Journal of Economics/Revue canadienne d'économique, 2008•Wiley Online Library
The emergence of the Grossman and Helpman (1994) model of endogenous protection as
the preëminent model in the political economy of trade literature has been significantly
advanced by the finding that its predictions about the cross‐industry pattern of protection are
broadly consistent with the data. However, in their empirical implementation of the
Grossman‐Helpman model, researchers have assumed the presence of multiple policy
instruments and extraneous political factors. We argue that incorporating these assumptions …
the preëminent model in the political economy of trade literature has been significantly
advanced by the finding that its predictions about the cross‐industry pattern of protection are
broadly consistent with the data. However, in their empirical implementation of the
Grossman‐Helpman model, researchers have assumed the presence of multiple policy
instruments and extraneous political factors. We argue that incorporating these assumptions …
Abstract
The emergence of the Grossman and Helpman (1994) model of endogenous protection as the preëminent model in the political economy of trade literature has been significantly advanced by the finding that its predictions about the cross‐industry pattern of protection are broadly consistent with the data. However, in their empirical implementation of the Grossman‐Helpman model, researchers have assumed the presence of multiple policy instruments and extraneous political factors. We argue that incorporating these assumptions into the theory significantly changes its predictions about the cross‐industry pattern of protection. JEL classification: F1
Wiley Online Library
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