The Dracula Effect: Voter Information and Trade Policy

17.09.2019 12:30 – 13:30

GENEVA TRADE AND DEVELOPMENT WORKSHOP / ABSTRACT

We provide a model of tariff formation in which protectionism is politically popular because voters endogenously acquire information as producers, not as consumers. The model predicts that more media coverage of a sector will reduce protection for it. We provide evidence that this is true in the US, exploiting for indentification the timing of newsworthy events in each industry (specifically, fatal industrial accidents) and more newsworthy events of a general nature.

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Graduate Institute
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