Title: Protection for sale with imperfect rent capturing
Authors: Facchini, Giovanni
Van Biesebroeck, Jo
Willmann, Gerald
Issue Date: 2005
Publisher: National Bureau of Economic Research (NBER)
Series Title: NBER working paper 11269 pages:1-36
Abstract: 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.
Publication status: published
KU Leuven publication type: ER
Appears in Collections:Research Center of Econometrics, Leuven
Department of Economics, Leuven - miscellaneous
Research Center of International Economics, Leuven

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