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On Why Rates Of Assistance Differ Between Australia'S Rural Industries

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  • Kym Anderson

Abstract

An economic theory of politics is applied to the question of why there are large differences in effective rates of assistance to Australia's rural industries. It is suggested that a major part of the explanation is the different incentives faced by industry lobby groups to demand assistance and by the government to supply assistance. Various determinants of the incentives to demand and supply assistance are hypothesized, and these hypotheses are tested against the existing pattern of rural assistance. The evidence generally supports the hypotheses, and suggests some policy changes to reduce existing government distortions.
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Suggested Citation

  • Kym Anderson, 1978. "On Why Rates Of Assistance Differ Between Australia'S Rural Industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 99-114, 08-12.
  • Handle: RePEc:bla:ajarec:v:22:y:1978:i:2-3:p:99-114
    DOI: j.1467-8489.1978.tb00210.x
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    File URL: http://hdl.handle.net/10.1111/j.1467-8489.1978.tb00210.x
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    References listed on IDEAS

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    1. Richard E. Caves, 1976. "Economic Models of Political Choice: Canada's Tariff Structure," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 278-300, May.
    2. repec:cup:apsrev:v:68:y:1974:i:02:p:707-716_11 is not listed on IDEAS
    3. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    4. Jones, Ronald W., 1975. "Income distribution and effective protection in a multicommodity trade model," Journal of Economic Theory, Elsevier, vol. 11(1), pages 1-15, August.
    5. Pincus, J J, 1975. "Pressure Groups and the Pattern of Tariffs," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 757-778, August.
    6. Mayer, Wolfgang, 1974. "Short-Run and Long-Run Equilibrium for a Small Open Economy," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 955-967, Sept./Oct.
    7. Campbell, Keith O., 1966. "Australian Farm Organizations And Agricultural Policy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 10(02), December.
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    Cited by:

    1. Peter G. Warr, 1978. "The Case Against Tariff Compensation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 85-98, 08-12.
    2. Greenville, Jared W. & MacAulay, T. Gordon, 2004. "Tariffs and Steel: The US Safeguard Actions," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58452, Australian Agricultural and Resource Economics Society.
    3. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.
    4. Harris, Stuart, 1979. "The Case Against Tariff Compensation: A Comment," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(02), August.
    5. Haynes, J.E., 1985. "Rural Assistance Levels: The Influence Of Policies And World Price Changes," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 29(01), April.
    6. Harry Gorter & Johan F. M. Swinnen, 1994. "The Economic Polity Of Farm Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 312-326.
    7. William J. Martin, 1990. "Public Choice Theory And Australian Agricultural Policy Reform," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(3), pages 189-211, December.
    8. Jonathan Pincus, 2014. "Public Choice Theory had Negligible Effect on Australian Microeconomic Policy, 1970s to 2000s," School of Economics Working Papers 2014-02, University of Adelaide, School of Economics.
    9. D. MacLaren, 1992. "The Political Economy Of Agricultural Policy Reform In The European Community And Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 424-439.
    10. Kym Anderson, 2016. "National and global price- and trade-distorting policies," Departmental Working Papers 2016-07, The Australian National University, Arndt-Corden Department of Economics.

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