A Quantile Based Test Of Protection For Sale Model

Hajime Katayama, Susumu Imai and Kala Krishna ()

No 1132, Working Paper from Economics Department, Queen's University

Abstract: 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 provides the following prediction: in the quantile regression of the protection measure on the inverse import penetration ratio divided by the import demand elasticity, its coefficient should be positive at the quantile close to one. We examine this prediction using the data from Gawande and Bandyopadhyay (2000). The results do not provide any evidence favoring the PFS model.

Keywords: Quantile Regression; Protection for Sale; Political Economy (search for similar items in EconPapers)
JEL-codes: D72 F13 F17 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2007-08
New Economics Papers: this item is included in nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1132.pdf First version 2007 (application/pdf)

Related works:
Journal Article: A quantile-based test of protection for sale model (2013)
Working Paper: A Quantile-based Test of Protection for Sale Model (2013)
Working Paper: A Quantile-based Test of Protection for Sale Model (2010)
Working Paper: A Quantile-based Test of Protection for Sale Model (2010)
Working Paper: A Quantile-based Test of Protection for Sale Model (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1132

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