Political Reforms and Public Policies: Evidence from Agricultural Protection
AbstractThis 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 InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 25109.
Date of creation: 2009
Date of revision:
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More information through EDIRC
Democratic Reforms; Agricultural Distortions; Comparative;
Other versions of this item:
- Olper, A. & Falkowski, J. & Swinnen, Jo, 2009. "Political Reforms and Public Policies: Evidence from Agricultural Protection," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/260796, Katholieke Universiteit Leuven.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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- Olper, Alessandro & Raimondi, Valentina, 2012. "Electoral Rules, Forms of Government and Redistributive Policy: Evidence from Agriculture," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/343970, Katholieke Universiteit Leuven.
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- 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.
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