Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India

This paper proposes a new method to test the Grossman-Helpman model of endogenous protection and lobby formation, which does not require data on lobby formation or contributions. It identifies politically organized industries using commonly available trade and production data, as well as the model&#...

Full description

Bibliographic Details
Main Authors: Cadot, Olivier, Dutoit, Laure, Grether, Jean-Marie, Olarreaga, Marcelo
Format: Online
Language:eng
Published: Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2013
Subjects:
Online Access:https://revistas.unc.edu.ar/index.php/REyE/article/view/11875
_version_ 1811172128421052416
author Cadot, Olivier
Dutoit, Laure
Grether, Jean-Marie
Olarreaga, Marcelo
author_facet Cadot, Olivier
Dutoit, Laure
Grether, Jean-Marie
Olarreaga, Marcelo
author_sort Cadot, Olivier
collection Portal de Revistas
description This paper proposes a new method to test the Grossman-Helpman model of endogenous protection and lobby formation, which does not require data on lobby formation or contributions. It identifies politically organized industries using commonly available trade and production data, as well as the model's structural parameter estimates. Applied to India, it yields results that are qualitatively consistent with the model's predictions and that seem quantitatively more plausible than estimates given for the US by alternative methods. Our estimates imply that the weight put by the Indian government on contributions by politically organized sectors is a third of the weight it puts on (gross) social welfare, well above existing estimates for the United States.  
format Online
id oai:ojs.revistas.unc.edu.ar:article-11875
institution Universidad Nacional de Cordoba
language eng
publishDate 2013
publisher Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
record_format ojs
spelling oai:ojs.revistas.unc.edu.ar:article-118752022-04-06T21:58:45Z Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India Las tarifas endógenas en un modelo de agencia común: Un nuevo enfoque empírico aplicado a la India Cadot, Olivier Dutoit, Laure Grether, Jean-Marie Olarreaga, Marcelo India political economy protection F10 F11 F13 India economía política protección F10 F11 F13 This paper proposes a new method to test the Grossman-Helpman model of endogenous protection and lobby formation, which does not require data on lobby formation or contributions. It identifies politically organized industries using commonly available trade and production data, as well as the model's structural parameter estimates. Applied to India, it yields results that are qualitatively consistent with the model's predictions and that seem quantitatively more plausible than estimates given for the US by alternative methods. Our estimates imply that the weight put by the Indian government on contributions by politically organized sectors is a third of the weight it puts on (gross) social welfare, well above existing estimates for the United States.   En este trabajo se propone un nuevo método para testear el modelo de Grossman-Helpman sobre protección endógena y la formación de grupos de interés (lobbies), que no requiere de datos respecto a la formación de los grupos de interés o de sus contribuciones. Identifica a las industrias políticamente organizadas a partir de datos de producción y comercio que son de acceso común, así como las estimaciones de los parámetros estructurales del modelo. Aplicado a la India, produce resultados que son cualitativamente consistentes con las predicciones del modelo, y que parecen cuantitativamente más plausibles que las estimaciones para los EE.UU obtenidas por métodos alternativos. Nuestras estimaciones implican que la importancia que el gobierno de la India asigna a las contribuciones de los sectores políticamente organizados es una tercera parte de la importancia que le asigna al bienestar social (bruto), muy por encima de las estimaciones existentes para los Estados Unidos. Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2013-12-01 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://revistas.unc.edu.ar/index.php/REyE/article/view/11875 10.55444/2451.7321.2013.v51.n1.11875 Revista de Economía y Estadística; Vol. 51 No. 1 (2013); 25-52 Revista de Economía y Estadística; Vol. 51 Núm. 1 (2013); 25-52 2451-7321 0034-8066 10.55444/2451.7321.2013.v51.n1 eng https://revistas.unc.edu.ar/index.php/REyE/article/view/11875/12233 Derechos de autor 2013 Olivier Cadot, Laure Dutoit, Jean-Marie Grether, Marcelo Olarreaga http://creativecommons.org/licenses/by-nc-nd/4.0
spellingShingle India
political economy
protection
F10
F11
F13
India
economía política
protección
F10
F11
F13
Cadot, Olivier
Dutoit, Laure
Grether, Jean-Marie
Olarreaga, Marcelo
Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India
title Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India
title_alt Las tarifas endógenas en un modelo de agencia común: Un nuevo enfoque empírico aplicado a la India
title_full Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India
title_fullStr Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India
title_full_unstemmed Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India
title_short Endogenous Tariffs in a Common-Agency Model: A New Empirical Approach Applied to India
title_sort endogenous tariffs in a common agency model a new empirical approach applied to india
topic India
political economy
protection
F10
F11
F13
India
economía política
protección
F10
F11
F13
topic_facet India
political economy
protection
F10
F11
F13
India
economía política
protección
F10
F11
F13
url https://revistas.unc.edu.ar/index.php/REyE/article/view/11875
work_keys_str_mv AT cadotolivier endogenoustariffsinacommonagencymodelanewempiricalapproachappliedtoindia
AT dutoitlaure endogenoustariffsinacommonagencymodelanewempiricalapproachappliedtoindia
AT gretherjeanmarie endogenoustariffsinacommonagencymodelanewempiricalapproachappliedtoindia
AT olarreagamarcelo endogenoustariffsinacommonagencymodelanewempiricalapproachappliedtoindia
AT cadotolivier lastarifasendogenasenunmodelodeagenciacomununnuevoenfoqueempiricoaplicadoalaindia
AT dutoitlaure lastarifasendogenasenunmodelodeagenciacomununnuevoenfoqueempiricoaplicadoalaindia
AT gretherjeanmarie lastarifasendogenasenunmodelodeagenciacomununnuevoenfoqueempiricoaplicadoalaindia
AT olarreagamarcelo lastarifasendogenasenunmodelodeagenciacomununnuevoenfoqueempiricoaplicadoalaindia