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The Political Economy of U.S. Wheat Legislation

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  • Babcock, Bruce A
  • Carter, Colin A
  • Schmitz, Andrew

Abstract

Both taxpayer subsidies to U.S. wheat producers and domestic deadweight losses increased as a result of the U.S. wheat program adopted in 1985. A calculation of the costs and benefits of alternative wheat policies shows that mandatory production controls with no taxpayer expense could have made wheat producers as well off as the adopted policy. Gary Becker's (1983) theory of competition among interest groups and Sam Peltzman's (1976) theory of the equilibrium amount of regulation are shown to be consistent with the observed policy choice if the list of affected interest groups includes agricultural input suppliers and grain marketing firms. Copyright 1990 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 28 (1990)
Issue (Month): 2 (April)
Pages: 335-53

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Handle: RePEc:oup:ecinqu:v:28:y:1990:i:2:p:335-53

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Cited by:
  1. Salhofer, Klaus & Schmid, Erwin, 2004. "Distributive leakages of agricultural support: some empirical evidence," Agricultural Economics, Blackwell, vol. 30(1), pages 51-62, January.
  2. Bullock, D. S. & Salhofer, K., 1998. "Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example," Agricultural Economics, Blackwell, vol. 18(3), pages 249-259, May.
  3. McLaren, John, 1998. "Consequences of discretion in the formation of commodities policy," Journal of Public Economics, Elsevier, vol. 69(3), pages 347-370, September.
  4. Brooks, Jonathan, 1997. "Congressional Voting On Farm Payment Limitations: Political Pressure Of Ideological Conviction?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(02), December.
  5. Bullock, D.S. & Salhofer, K., 1998. "Measuring the social costs of suboptimal combinations of policy instruments: A general framework and an example," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 18(3), May.

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