How to order
IMF Publications

Working Papers in full text
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All


Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile



Protection for Free? The Political Economy of U.S. TariffSuspensions

Author/Editor: Mishra, Prachi | Mayda, Anna Maria | Ludema, Rodney D.
Authorized for Distribution: September 1, 2010
Electronic Access: Free Full Text (PDF file size is 2,021KB)
Use the free Adobe Acrobat Reader to view this PDF file.
 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper studies the political influence of individual firms on Congressional decisions to suspend tariffs on U.S. imports of intermediate goods. We develop a model in which firms influence the government by transmitting information about the value of protection, via costless messages (cheap-talk) and costly messages (lobbying). We estimate our model using firm-level data on tariff suspension bills and lobbying expenditures from 1999-2006, and find that indeed verbal opposition by import-competing firms, with no lobbying, significantly reduces the probability of a suspension being granted. In addition, lobbying expenditures by proponent and opponent firms sway this probability in opposite directions.
 
Order a print copy
Series: Working Paper No. 10/211
Subject(s): Corporate sector | Economic models | Import tariffs | Imports | Political economy | Tariff structures | Trade policy | United States
Author's keyword(s): trade policy | political economy
 
English  
    Published:   September 1, 2010        
            Format:   Paper
    Stock No:   WPIEA2010211   Pages:   48
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
Please address any questions about this title to publications@imf.org.