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Political Reforms and Public Policies: Evidence from Agricultural Protection

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Author Info

  • Alessandro Olper
  • Jan Falkowski
  • Johan Swinnen

Abstract

This paper studies the effect of political regime transitions on public policy using a dataset on global agricultural distortions over 50 years (including data from 74 developing and developed countries over the period 1955-2005). We employ both difference-in-differences regressions and semi-parametric matching methods, exploiting the time series and cross-sectional variation in the data. Our semi-parametric estimates show that parametric methods might underestimate the effect of democracy on public policy. In addition, we find that the effect is asymmetric: agricultural protection increases after a country's transition to democracy of about 9% points, but there is no effect when the political regime shifts from democracy to autocracy. Overall, the evidence supports the redistributive nature of democratic institutions toward the majority and, therefore, it is consistent with the median voter model of political behaviour.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 25109.

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Date of creation: 2009
Date of revision:
Handle: RePEc:lic:licosd:25109

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Related research

Keywords: Democratic Reforms; Agricultural Distortions; Comparative;

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Cited by:
  1. Jan Fałkowski & Alessandro Olper, 2012. "Political Competition and Policy Choices: The Evidence From Agricultural Protection," Working Papers 2012-18, Faculty of Economic Sciences, University of Warsaw.
  2. Paola Giuliano & Prachi Mishra & Antonio Spilimbergo, 2013. "Democracy and Reforms: Evidence from a New Dataset," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(4), pages 179-204, October.
  3. Fałkowski, Jan & Olper, Alessandro, 2010. "Political competition and support for agriculture," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52697, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  4. Kym Anderson & Gordon Rausser & Johan Swinnen, 2012. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," LICOS Discussion Papers 32312, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Giuliano, Paola & Mishra, Prachi & Spilimbergo, Antonio, 2009. "Democracy and Reforms," IZA Discussion Papers 4032, Institute for the Study of Labor (IZA).
  6. Beghin, John C. & Li, Yuan, 2013. "The Political Economy Of Food Standard Determination: International Evidence From Maximum Residue Limits," Staff General Research Papers 36181, Iowa State University, Department of Economics.

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