TY  - JOUR
AU  - Facchini,Giovanni
AU  - Biesebroeck,Johannes Van
AU  - Willmann,Gerald
TI  - Protection for Sale with Imperfect Rent Capturing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11269
PY  - 2005
Y2  - April 2005
UR  - http://www.nber.org/papers/w11269
L1  - http://www.nber.org/papers/w11269.pdf
N1  - Author contact info:
Giovanni Facchini
Erasmus School of Economics
Erasmus University Rotterdam
E-Mail: facchini@ese.eur.nl

Johannes Van Biesebroeck
Centre for Economic Studies
K.U.Leuven
Naamsestraat 69
3000 Leuven
BELGIUM
Tel: +32 16 32 67 93
Fax: +32 16 32 67 96
E-Mail: jo.vanbiesebroeck@econ.kuleuven.be

Gerald Willmann
Dept of Economics, WSP 1, CAU Kiel
24098 Kiel, Germany
Tel: +49 431 880-3354
Fax: +49 431 880-3150
E-Mail: gerald@email.uni-kiel.de
AB  - Structurally estimating the Grossman and Helpman (1994) model using coverage ratios that include non-tariff barriers leads to biased parameter estimates. We develop a "protection for sale"  theoretical framework consistent with the data, by explicitly allowing for non-tariff barriers. Introducing partial rent capturing we obtain a testable specification which finds support in the data. Our results suggest that average rent capturing is in the order of 72-75 percent.
ER  -