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Why Small Groups And Low Income Sectors Obtain Subsidies: The “Altruistic” Side Of A “Self‐Interested” Government

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  • JOHAN F. M. SWINNEN
  • HARRY DE GORTER

Abstract

We develop a model of political support seeking politicians and support supplying voters. Based on Downs' original formulation, the framework yields endogenous political weights with both liberal and conservative properties. Our model reconciles the apparent contradiction between models of self‐interested politicians and of governments motivated by social concerns. We show that the “altruistic” aspect of government behavior is consistent with its “self‐interested” behavior. We determine that the Olson‐Becker pressure group model is not unique. An increase in deadweight costs reduces the equilibrium subsidy. Smaller groups receive a larger per capita subsidy. These results are consistent with Becker's model.

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  • Johan F. M. Swinnen & Harry De Gorter, 1993. "Why Small Groups And Low Income Sectors Obtain Subsidies: The “Altruistic” Side Of A “Self‐Interested” Government," Economics and Politics, Wiley Blackwell, vol. 5(3), pages 285-293, November.
    • Handle: RePEc:bla:ecopol:v:5:y:1993:i:3:p:285-293
    DOI: 10.1111/j.1468-0343.1993.tb00080.x
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    References listed on IDEAS

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    1. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    2. Swinnen, Johan F.M., 1992. "A Theory of Competition Between Politicians for Political Support," Working Papers 128094, Cornell University, Department of Applied Economics and Management.
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