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

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  • Thomas A. Garrett
  • Thomas L. Marsh
  • Maria I. Marshall

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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Bibliographic Info

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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  1. Faith, Roger L & Leavens, Donald R & Tollison, Robert D, 1982. "Antitrust Pork Barrel," Journal of Law and Economics, University of Chicago Press, vol. 25(2), pages 329-42, October.
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  3. Joy Harwood & Agapi Somwaru, 1997. "Implications of Disaster Assistance Reform for Non-insured Crops," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 419-429.
  4. Thomas A. Garrett & Russell S. Sobel, 2002. "The political economy of FEMA disaster payments," Working Papers 2002-012, Federal Reserve Bank of St. Louis.
  5. Weingast, Barry R & Marshall, William J, 1988. "The Industrial Organization of Congress; or, Why Legislatures, Like Firms, Are Not Organized as Markets," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 132-63, February.
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  7. 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).
  8. 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.
  9. James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
  10. 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.
  11. 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.
  12. Jonathan C. Brooks & A. Colin Cameron & Colin A. Carter, 1998. "Political Action Committee Contributions and U.S. Congressional Voting on Sugar Legislation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 441-454.
  13. Marilyn Young & Michael Reksulak & William F. Shughart, 2001. "The Political Economy of the IRS," Economics and Politics, Wiley Blackwell, vol. 13(2), pages 201-220, 07.
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Cited by:
  1. Nadolnyak, Denis A., 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.
  2. Schoengold, Karina & Ding, Ya & Headlee, Russell, 2012. "The Impact of Ad-hoc Disaster Programs on the Use of Conservation Practices," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124957, Agricultural and Applied Economics Association.
  3. Nadolnyak, Denis A. & Novak, James L., 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).
  4. Mingtao Ding & Fangqiang Wei & Kaiheng Hu, 2012. "Property insurance against debris-flow disasters based on risk assessment and the principal–agent theory," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 60(3), pages 801-817, February.

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