Campaign Contributions and Agricultural Subsidies
AbstractThis 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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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Economics and Politics.
Volume (Year): 13 (2001)
Issue (Month): 3 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985
Other versions of this item:
- Lopez, Rigoberto A., 2001. "Campaign Contributions and Agricultural Subsidies," Research Reports 25223, University of Connecticut, Food Marketing Policy Center.
- Rigoberto A. Lopez, 2001. "Campaign Contributions and Agricultural Subsidies," Food Marketing Policy Center Research Reports 059, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
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.:
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