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Campaign Contributions and Agricultural Subsidies

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Author Info
Rigoberto A. Lopez

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Abstract

This article examines the influence of campaign contributions on agricultural subsidies. Empirical results revealed that rent-seeking works, i.e. contributions, influence agricultural subsidies in the manner they best serve contributors' economic interests. Eliminating campaign contributions would significantly decrease agricultural subsidies, hurt farm groups, benefit consumers and taxpayers, and increase social welfare by approximately $5.5 billion. Although contributions are not the only determinants of agricultural subsidies, investment returns to farm PAC contributors are quite high ($1 in contributions brings about $2,000 in policy transfers). In fact, the results are in sharp contrast to the "truthful contributions" assumption of the Grossman-Helpman model. Copyright 2001 Blackwell Publishers Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Economics and Politics.

Volume (Year): 13 (2001)
Issue (Month): 3 (November)
Pages: 257-279
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Handle: RePEc:bla:ecopol:v:13:y:2001:i:3:p:257-279

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
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  2. Honma, Masayoshi & Hayami, Yujiro, 1986. "Structure of agricultural protection in industrial countries," Journal of International Economics, Elsevier, vol. 20(1-2), pages 115-129, February. [Downloadable!] (restricted)
  3. Mueller, Dennis C & Stratmann, Thomas, 1994. " Informative and Persuasive Campaigning," Public Choice, Springer, vol. 81(1-2), pages 55-77, October.
  4. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March. [Downloadable!] (restricted)
  5. Parikh, A, 1979. "Estimation of Supply Functions for Coffee," Applied Economics, Taylor and Francis Journals, vol. 11(1), pages 43-54, March.
  6. Lopez, Rigoberto A & Pagoulatos, Emilio, 1996. "Trade Protection and the Role of Campaign Contributions in U.S. Food and Tobacco Industries," Economic Inquiry, Oxford University Press, vol. 34(2), pages 237-48, April.
  7. Beghin, John C & Kherallah, Mylene, 1994. "Political Institutions and International Patterns of Agricultural Protection," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 482-89, August. [Downloadable!] (restricted)
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  8. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fredriksson, Per & Mamun, Khawaja, 2009. "Tobacco Politics and Electoral Accountability in the United States," Working Papers 2009003, Sacred Heart University, John F. Welch College of Business. [Downloadable!]
  2. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank. [Downloadable!]
  3. Lopez, Rigoberto A. & Hathie, Ibrahima, 2002. "Is Protection for Sale in U.S. Food Industries?," Research Reports 25182, University of Connecticut, Food Marketing Policy Center. [Downloadable!]
  4. Lopez, Rigoberto A. & Matschke, Xenia, 2005. "Food Protection for Sale," Research Reports 25195, University of Connecticut, Food Marketing Policy Center. [Downloadable!]
    Other versions:
  5. Gawande, Kishore & Hoekman, Bernard, 2006. "Lobbying and Agricultural Trade Policy in the United States," CEPR Discussion Papers 5634, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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