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About Lecture Notes On Grossman Helpman
This document provides lecture notes summarizing the Grossman-Helpman model of trade protection. The key points are: 1) The model has three parts - the economic structure, a political structure where sectors can form lobbies, and equilibrium tariffs. 2) Equilibrium tariffs are determined by a function that considers whether a sector has a lobby, the sector's import penetration level, and elasticities. 3) The original model prediction that unorganized sectors face import subsidies is inconsistent. The model works better assuming capital is highly concentrated. 4) Empirical tests find mixed support for the model's implications, suggesting extensions could improve its predictive power.
Detailed Information
| Author: | ['Hector Perez Saiz'] |
|---|---|
| Publication Year: | 2020 |
| Pages: | 21 |
| Language: | English |
| Format: | |
| Price: | FREE |
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