The microeconomics of the developmental paradox: on the political economy of food price policy
A longstanding puzzle in comparative economics is the 'developmental paradox', the tendency for government support for agriculture to increase with national income and to decrease with the proportion of economic activity and of the population in agriculture. This paper offers a microeconomic explanation for that puzzle. It establishes analytically the microeconomic basis for coalition alignments with respect to food price policy, then numerically simulates the comparative static effects of alternative food policies on coalition structure. A parsimonious household model applied to a heterogeneously endowed society demonstrates how variation in individual welfare effects might beget distinct coalitions in the debate over food price policy and how those policies are inextricably linked to land, population, and technology policies in food agriculture. Moreover, coalition alignments on particular policy debates are path-dependent. In particular, food price policy creates its own political support. © 1999 Elsevier Science B.V. All rights reserved.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
- Fulginiti, Lilyan E. & Shogren, Jason F., 1992.
"Agricultural Protection in Developing Countries,"
Staff General Research Papers Archive
779, Iowa State University, Department of Economics.
- Lilyan E. Fulginiti & Jason F. Shogren, 1994. "Agricultural Protection in Developing Countries," Center for Agricultural and Rural Development (CARD) Publications 94-gatt13, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Fulginiti, Lilyan E. & Shogren, Jason F., 1994. "Agricultural Protection in Developing Countries," Staff General Research Papers Archive 737, Iowa State University, Department of Economics.
- Lilyan E. Fulginiti & Jason F. Shogren, 2005. "Agricultural Protection in Developing Countries," Others 0502010, EconWPA.
- Lilyan E. Fulginiti & Jason F. Shogren, 1994. "Agricultural Protection in Developing Countries," Food and Agricultural Policy Research Institute (FAPRI) Publications 94-gatt13, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-14, February.
- Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
- Turnovsky, Stephen J & Shalit, Haim & Schmitz, Andrew, 1980. "Consumer's Surplus, Price Instability, and Consumer Welfare," Econometrica, Econometric Society, vol. 48(1), pages 135-52, January.
- Swinnen, Jo & van der Zee, Frans A, 1993. "The Political Economy of Agricultural Policies: A Survey," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(3), pages 261-90.
- Tyers,Rod & Anderson,Kym, 1992.
"Disarray in World Food Markets,"
Cambridge University Press, number 9780521351058, Junio.
- Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
- Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
- Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
- Michael T. Weber & John M. Staatz & Eric W. Crawford & Richard H. Bernsten & John S. Holtzman, 1988.
"Informing Food Security Decisions in Africa: Empirical Analysis and Policy Dialogue,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 70(5), pages 1044-1052.
- Weber, Michael T. & Staatz, John M. & Holtzman, John S. & Crawford, Eric W. & Bernsten, Richard H., 1988. "Informing Food Security Decisions in Africa: Empirical Analysis and Policy Dialogue," Staff Papers 200969, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Hans P. Binswanger, 1980.
"Attitudes Toward Risk: Experimental Measurement in Rural India,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
- Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
- C. Peter Timmer & Harold Alderman, 1979. "Estimating Consumption Parameters for Food Policy Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 982-987.
- Timmer, C Peter, 1981. "Is There "Curvature" in the Slutsky Matrix?," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 395-402, August.
- Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April.
- Barrett, Christopher B., 1997. "Liberalization and food price distributions: ARCH-M evidence from Madagascar," Food Policy, Elsevier, vol. 22(2), pages 155-173, April.
- Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
- Epstein, L, 1975. "A Disaggregate Analysis of Consumer Choice under Uncertainty," Econometrica, Econometric Society, vol. 43(5-6), pages 877-92, Sept.-Nov.
- Krueger, Anne O & Schiff, Maurice & Valdes, Alberto, 1988. "Agricultural Incentives in Developing Countries: Measuring the Effect of Sectoral and Economywide Policies," World Bank Economic Review, World Bank Group, vol. 2(3), pages 255-71, September.
- Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
- David, Cristina C & Huang, Jikun, 1996. "Political Economy of Rice Price Protection in Asia," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 463-83, April.
- Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
- Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
When requesting a correction, please mention this item's handle: RePEc:eee:agecon:v:20:y:1999:i:2:p:159-172. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.