ABSTRACT
This chapter looks at the supply of regulation in an attempt to understand the behavior of the International Trade Commission (ITC). The data on regulatory decisions by the ITC in this study cover a period of a little more that ten years, from the passage of the 1974 Trade Act to the beginning of 1985. These years were chosen because the rules under which the ITC operated prior to 1974 were significantly different, enough so as to preclude pooling data from before 1974 with data from after 1974. In this econometrics describes the three levels of estimation that are used to explain the supply of and demand for trade regulation. To estimate the supply and demand for regulation separately, a simple logit model is used for each. Finally, nested logit model been used to incorporate both the supply and the demand sides of the regulatory issue.
