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Protection for Sale with Imperfect Rent Capturing / Giovanni Facchini, Johannes Van Biesebroeck, Gerald Willmann.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Facchini, Giovanni.
Contributor:
National Bureau of Economic Research.
Van Biesebroeck, Johannes.
Willmann, Gerald.
Series:
Working Paper Series (National Bureau of Economic Research) no. w11269.
NBER working paper series no. w11269
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2005.
Summary:
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.
Notes:
Print version record
April 2005.

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