A Quantile-based Test of Protection for Sale Model
نویسنده
چکیده
This paper proposes a new test of the Protection for Sale (PFS) model by Grossman and Helpman (1994). Unlike existing methods in the literature, our approach does not require any data on political organizations. We use quantile and quantile IV regressions to do so using the data from Gawande and Bandyopadhyay (2000). Surprisingly, the results do not provide any evidence favoring the PFS model. We also explain why previous work may have inadvertently found support for it. JEL Classi cation: F13, F14
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A Quantile-based Test of Protection for Sale Model When Political Organization is Unknown
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