Статьи
Всего статей в данном разделе : 1
|
Food Protection for Sale [статья]
Опубликовано на портале: 25-10-2007
Rigoberto A. Lopez, Xenia Matschke
University of Connecticut, Department of Economics Working Paper.
2005.
No. 2005-13R.
This article tests the Protection for Sale (PFS) model using detailed data
from
U.S. food processing industries from 1978 to 1992 under alternative import demand
specifications. All empirical results support the PFS model predictions and
previous empirical work qualitatively. Although welfare weights are very sensitive
to import demand specification, a surprising result is that we obtain weights
between 2.6 and 3.6 for domestic welfare using import slopes or elasticities derived
from domestic demand and supply functions. In contrast, results based on
import slopes or elasticities from directly specified import demands (including the
Armington model) yield the usual, unrealistically large estimates for the domestic
welfare weight. We contend that the latter empirical paradox arises mainly because
the explanatory variables tend to be extremely large for industries with low
import ratios and/or low estimated elasticities or slopes resulting from relatively
volatile import prices. The results with derived import parameters point to a much
stronger role of campaign contributions within the PFS model than previously
found. They also suggest that the commonly-used Armington estimates may not
be appropriate for estimating the PFS model.

