NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Protection for Sale or Surge Protection?

Susumu Imai, Hajime Katayama, Kala Krishna

NBER Working Paper No. 12258
Issued in May 2006
NBER Program(s):International Trade and Investment

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 surges, but only for organized industries, is simulated and shown to provide parameter estimates consistent with the protection for sale framework. This suggests that the standard approach may be less of a test than previously thought.

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Document Object Identifier (DOI): 10.3386/w12258

Published: Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Protection for sale or surge protection?," European Economic Review, Elsevier, vol. 53(6), pages 675-688, August. citation courtesy of

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