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Political allocation of U.S. agriculture disaster payments in the 1990s

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Author Info
Thomas A. Garrett
Thomas L. Marsh
Maria I. Marshall

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Abstract

Legislation passed during the 1990s attempted to move U.S. agriculture disaster relief to a more market oriented process. The failure of this legislation has been attributed to the political system behind agricultural disaster relief. This paper explores the impact of political influence on the allocation of U.S. direct agriculture disaster payments. The results reveal that disaster payments are not based solely on need, but are higher in those states represented by public officials key to the allocation of relief. The effectiveness of legislation aimed at promoting more efficient disaster payments systems, such as crop insurance, over direct cash payments is also examined.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2003-005.

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Date of creation: 2004
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Handle: RePEc:fip:fedlwp:2003-005

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Keywords: Agriculture ; Disaster relief;

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This paper has been announced in the following NEP Reports: 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. Bullock, David S. & Rutstrom, Elisabet E., 2001. "The Size Of The Prize: Testing Rent-Dissipation When Transfer Quantity Is Endogenous," 2001 Annual meeting, August 5-8, Chicago, IL 20447, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Blackwell Publishing, vol. 13(2), pages 201-220, 07. [Downloadable!] (restricted)
  3. Faith, Roger L & Leavens, Donald R & Tollison, Robert D, 1982. "Antitrust Pork Barrel," Journal of Law & Economics, University of Chicago Press, vol. 25(2), pages 329-42, October.
  4. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July. [Downloadable!] (restricted)
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  5. Wright, Gavin, 1974. "The Political Economy of New Deal Spending: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 30-38, February. [Downloadable!] (restricted)
  6. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
  7. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April. [Downloadable!] (restricted)
  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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  1. Nadolnyak, Denis, 2008. "Determinants of Agricultural Disaster Payments in the Southeastern U.S.: County Level Analysis," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6733, Southern Agricultural Economics Association. [Downloadable!]
  2. Nadolnyak, Denis & Novak, James, 2008. "Determinants of Agricultural Disaster Payments in the Southeastern U.S.: County Level Analysis," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6554, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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