Protection for Sale with Imperfect Rent Capturing
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NBER Working Paper No. 11269
Issued in April 2005
NBER Program(s): ITI PR
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.
Published: Facchini, Giovanni, Johannes Van Biesebroeck and Gerald Willmann. "Protection for Sale with Imperfect Rent Capturing." Canadian Journal of Economics 39,3 (August 2006): 845-873.
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This paper was revised on November 18, 2005 Machine-readable bibliographic record -
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