Does 'Protection for Sale' Apply to the US Food Industries?

Rigoberto A. Lopez

Journal of Agricultural Economics, 2008, vol. 59, issue 1, pages 25-40

Abstract: This paper tests the Protection for Sale model in terms of the structure of protection and how realistic the estimated domestic welfare weight is relative to campaign contributions. Using data from US food manufacturing, empirical results support the key predictions for the structure of protection when either all food manufacturing industries or most of the general population is assumed to be politically organised. The domestic welfare weight is estimated as low as 0.837, the lowest econometric estimate to date, underlining that protection is for sale and that, with a qualified 'yes', the model fits the data for these industries. Copyright 2008 The Author. Journal compilation 2008 The Agricultural Economics Society.

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