Endogenous Lobbying in Search of Import Protection
Wolfgang Mayer () and
Sudesh Mujumdar
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Wolfgang Mayer: University of Cincinnati, USA
Sudesh Mujumdar: University of Southern Indiana, Evansville, Indiana, USA
Rivista di Politica Economica, 2003, vol. 93, issue 1, 119-148
Abstract:
This paper examines the general-equilibrium effects of declining import prices on import and export industries’ lobbying. Different from the existing literature, our model endogenizes the emergence of lobbying groups, as lobbying requires both money to “buy access” to policymakers and management time to utilize it. A decline in the import good’s world price leads to an immediate rise in lobbying by the import industry. Over time, however, this initial lobbying surge diminishes and lobbying might become less than before the price fall. The export industry lobbies more over time in spite of benefiting from a higher relative price.
JEL-codes: F10 H4 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:v:93:y:2003:i:1:p:119-148
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