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The Political Market for Government Assistance to Australian Manufacturing Industries

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  • KYM ANDERSON

Abstract

This paper applies the emerging neoclassical economic theory of politics to the question of why some industries receive more government assistance than others. Various determinants of the incentives for interest groups to demand assistance and for governments to supply assistance are suggested on a priori grounds. An attempt is then mode to see how well these factors can explain (I) the differences between rates of assistance to Australia's munufacturing industries at various points in time between 1968–49 and 1977–78. and (2) the different changes in those rates during the mid‐1970s. The evidence generally supports the theory, and prompts some suggestions as to how to reduce existing government distortions.

Suggested Citation

  • Kym Anderson, 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 132-144, June.
    • Handle: RePEc:bla:ecorec:v:56:y:1980:i:153:p:132-144
    DOI: 10.1111/j.1475-4932.1980.tb01661.x
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    References listed on IDEAS

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    1. Chamberlin, John, 1974. "Provision of Collective Goods As a Function of Group Size," American Political Science Review, Cambridge University Press, vol. 68(2), pages 707-716, June.
    2. Kym Anderson, 1978. "On Why Rates Of Assistance Differ Between Australia'S Rural Industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 99-114, 08-12.
    3. Mussa, Michael, 1974. "Tariffs and the Distribution of Income: The Importance of Factor Specificity, Substitutability, and Intensity in the Short and Long Run," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1191-1203, Nov.-Dec..
    4. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135-135.
    5. Albert Breton, 1974. "The economic theory of representative government: A reply," Public Choice, Springer, vol. 20(1), pages 129-133, December.
    6. G. K. Helleiner, 1977. "The Political Economy of Canada's Tariff Structure: An Alternative Model," Canadian Journal of Economics, Canadian Economics Association, vol. 10(2), pages 318-326, May.
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