TY  - JOUR
AU  - Imai,Susumu
AU  - Katayama,Hajime
AU  - Krishna,Kala
TI  - A Quantile-based Test of Protection for Sale Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13900
PY  - 2008
Y2  - March 2008
UR  - http://www.nber.org/papers/w13900
L1  - http://www.nber.org/papers/w13900.pdf
N1  - Author contact info:
Susumu Imai
Department of Economics
Queen's University
Kingston, Ontario, Canada
E-Mail: imais@econ.queensu.ca

Hajime Katayama
Department of Economics
University of Sydney
Sydney, Australia
E-Mail: h.katayama@econ.usyd.edu.au

Kala Krishna
Department of Economics
523 Kern Graduate Building
The Pennsylvania State University
University Park, PA 16802
Tel: 814/865-1106
Fax: 814/863-4775
E-Mail: kmk4@psu.edu
AB  - 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 organizations. We formally show that the PFS model predicts that the quantile regression of the protection measure on the inverse import penetration ratio divided by the import demand elasticity, should yield a positive coefficient for quantiles close to one. We test this prediction using the data from Gawande and Bandyopadhyay (2000). The results do not provide any evidence favoring the PFS model.
ER  -