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Protection for Sale with Imperfect Rent Capturing

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

No 2004-01, Economics Working Papers from Christian-Albrechts-University of Kiel, Department of Economics

Abstract: We extend the protection for sale framework by modelling non tariff barriers. Explicitly introducing partial rent capturing leads to a testable specification that bridges the gap between the theoretical Grossman and Helpman (1994) model and its empirical implementation, where coverage ratios have been used to measure protection. Our econometric analysis supports the augmented specification and leads to more realistic estimates for the structural parameters of the model.

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