Journal
JOURNAL OF INTERNATIONAL ECONOMICS
Volume 91, Issue 1, Pages 40-52Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jinteco.2013.03.002
Keywords
Protection for sale; Lobbying; Political economy; Quantile regression
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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 organization. We use quantile and IV quantile regressions in our tests, using the data from Gawande and Bandyopadhyay (2000). Surprisingly, the results do not provide any evidence favoring the PFS model. We also explain why previous work may have found support for it. (C) 2013 Published by Elsevier B.V.
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