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A Protectionist Bias in Majoritarian Politics

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Author Info
Gene M. Grossman
Elhanan Helpman

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Abstract

We develop a novel model of campaigns, elections, and policymaking in which the ex ante objectives of national party leaders differ from the ex post objectives of elected legislators. This generates a distinction between "policy rhetoric" and "policy reality" and introduces an important role for "party discipline" in the policymaking process. We identify a protectionist bias in majoritarian politics. When trade policy is chosen by the majority delegation and legislators in the minority have limited means to influence choices, the parties announce trade policies that favor specific factors, and the expected tariff or export subsidy is positive. Positions and expected outcomes monotonically approach free trade as party discipline strengthens.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11014.

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Date of creation: Dec 2004
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Handle: RePEc:nbr:nberwo:11014

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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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. Gian Maria Milesi-Ferretti & Roberto Perotti & Massimo Rostagno, 2002. "Electoral Systems And Public Spending," The Quarterly Journal of Economics, MIT Press, vol. 117(2), pages 609-657, May. [Downloadable!] (restricted)
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  2. Gene M. Grossman & Elhanan Helpman, 2005. "Party Discipline and Pork-Barrel Politics," Harvard Institute of Economic Research Working Papers 2075, Harvard - Institute of Economic Research. [Downloadable!]
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  3. Avinash Dixit & Gene M. Grossman & Faruk Gul, 2000. "The Dynamics of Political Compromise," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 531-568, June. [Downloadable!] (restricted)
  4. Torsten Persson & Gerard Roland & Guido Tabellini, 2000. "Comparative Politics and Public Finance," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1121-1161, December. [Downloadable!] (restricted)
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  5. Osborne, Martin J & Slivinski, Al, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 65-96, February. [Downloadable!] (restricted)
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  6. Tim Besley & Stephen Coate, . ""An Economic Model of Representative Democracy''," CARESS Working Papres 95-02, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences. [Downloadable!]
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(explanations, 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. Kishore Gawande & Pravin Krishna & Marcelo Olarreaga, 2009. "What Governments Maximize and Why: The View from Trade," NBER Working Papers 14953, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Conconi, Paola & Facchini, Giovanni & Zanardi, Maurizio, 2008. "Fast Track Authority and International Trade Negotiations," CEPR Discussion Papers 6790, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2008. "Environmental Policy in Majoritarian Systems," Working papers 2008-01, University of Connecticut, Department of Economics, revised Sep 2009. [Downloadable!]
  4. Olper, Alessandro & Raimondi, Valentina, 2008. "Consitutional Rules and Agricultural Policy Outcomes," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43870, European Association of Agricultural Economists. [Downloadable!]
    Other versions:
  5. Gene M. Grossman & Elhanan Helpman, 2005. "Party Discipline and Pork Barrel Politics," NBER Working Papers 11396, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2008. "For Sale: Trade Policy in Majoritarian Systems," Working papers 2008-20, University of Connecticut, Department of Economics. [Downloadable!]
  7. Martin Daniel Siyaranamual, 2007. "The Economics of Corporate Social Responsibility (CSR): Selling to Someone who Has Personal Valuation," Working Papers in Economics and Development Studies (WoPEDS) 200706, Department of Economics, Padjadjaran University, revised Jun 2007. [Downloadable!]
  8. Conconi, Paola & Sahuguet, Nicolas, 2005. "Re-election Incentives and the Sustainability of International Cooperation," CEPR Discussion Papers 5401, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  9. Swinnen, Johan F.M., 2008. "The Political Economy of Agricultural Protection: Europe in the 19th and 20th Century," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43859, European Association of Agricultural Economists. [Downloadable!]
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