Reconsidering the Empirical Evidence on the Grossman-Helpman Model of Endogenous Protection

16 Pages Posted: 2 Apr 2008

See all articles by Josh Ederington

Josh Ederington

University of Kentucky - Department of Economics

Jenny Minier

University of Kentucky - Department of Economics

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Abstract

The emergence of the Grossman and Helpman (1994) model of endogenous protection as the preimminent model in the political economy of trade literature has been significantly advanced by the finding that its predictions about the cross-industry pattern of protection are broadly consistent with the data. However, in their empirical implementation of the Grossman-Helpman model, researchers have assumed the presence of multiple policy instruments and extraneous political factors. We argue that incorporating these assumptions into the theory significantly changes its predictions about the cross-industry pattern of protection.

Suggested Citation

Ederington, Josh and Minier, Jenny, Reconsidering the Empirical Evidence on the Grossman-Helpman Model of Endogenous Protection. Canadian Journal of Economics/Revue canadienne d'économique, Vol. 41, Issue 2, pp. 501-516, May/mai 2008, Available at SSRN: https://ssrn.com/abstract=1115497 or http://dx.doi.org/10.1111/j.1540-5982.2008.00472.x

Josh Ederington (Contact Author)

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

Jenny Minier

University of Kentucky - Department of Economics ( email )

335 Business and Economics Building
Lexington, KY 40506
United States

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