Protection for Sale with Imperfect Rent Capturing

Giovanni Facchini (), Johannes Van Biesebroeck () and Gerald Willmann ()

No 11269, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: F13 (search for similar items in EconPapers)
Date: Written
Note: ITI PR
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Related works:
Working Paper: Protection for Sale with Imperfect Rent Capturing (2005)
Working Paper: Protection for Sale with Imperfect Rent Capturing (2003)
Journal Article: Protection for sale with imperfect rent capturing (2006)
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