ABSTRACT
It is important to note that these arguments for protection are very specific, both in the circumstances to which they apply and in the remedies they recommend. It is not legitimate to observe that the economy is full of imperfections and thus that protection is justified. Rather, the economist must be sure which distortion he is trying to cure, that his policies will address it efficiently, that there are no untoward spill-over effects, and that the existence or even the possibility of protection will not set up incentives to behave strategically.
