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The Political Economy of Commodity and Public Good Policies in European Agriculture: Implications for Policy Reform

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  • Rausser, Gordon C
  • de Gorter, Harry

Abstract

Public policies are often classified as falling into two conceptually distinct categories: productive policies which are designed to provide public goods (PERTs) and predatory policies which are primarily intended to affect redistribution (PESTs). Governments engage in both types of policies simultaneously when there exists interactions between the consequences of the two types of policies. They must be chosen jointly. Failure to recognize the interactions between the effects of the two policies and failure to recognize the consequent jointness in the policy selection process can lead to misinterpretation of the effectiveness of each policy. Within this context, we explore the interrelatedness of public good policies and redistributive policies in European agriculture. We discuss the implications for reform of both types of policies. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Rausser, Gordon C & de Gorter, Harry, 1991. "The Political Economy of Commodity and Public Good Policies in European Agriculture: Implications for Policy Reform," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(3-4), pages 485-504.
    • Handle: RePEc:oup:erevae:v:18:y:1991:i:3-4:p:485-504
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    Cited by:

    1. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana III. Vegyes motívumok az agrárpolitikában: termelő és ragadozó politikák [The political economy of agrarian policy. Part III. Mixed motives in agrarian polic," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 424-436.
    2. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    3. Wiebelt, Manfred & Herrmann, Roland & Schenck, Patricia & Thiele, Rainer, 1992. "Discrimination against agriculture in developing countries?," Open Access Publications from Kiel Institute for the World Economy 458, Kiel Institute for the World Economy (IfW Kiel).
    4. von Cramon-Taubadel, Stephan, 1992. "A critical assessment of the political preference function approach in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 371-394, October.
    5. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana I. A kormányzati politikák modellezése a mezőgazdaságban [The political economy of agrarian politics. Part I. Modeling of governmental policies in agricultur," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 223-246.

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