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Social Heterogeneity and Wasteful Lobbying

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  • Fafchamps, Marcel
  • de Janvry, Alain
  • Sadoulet, Elisabeth

Abstract

Using a general equilibrium model with endogenous policy, the authors explore how heterogeneity affects wasteful lobbying by sectoral interest groups. With the help of a simulation approach, they first investigate the impact of information heterogeneity on how lobbies react to a shift from a soft to a strict government budget constraint. Next, the authors examine how lobbying is influenced by heterogenous perception of the general equilibrium implications of lobbying effort. Finally, they explore the consequences of heterogenous specialization in households' asset portfolios. The authors conclude that social heterogeneity in information, perceptions, and portfolio compositions increases incentives to lobby. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Fafchamps, Marcel & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Social Heterogeneity and Wasteful Lobbying," Public Choice, Springer, vol. 98(1-2), pages 5-27, January.
    • Handle: RePEc:kap:pubcho:v:98:y:1999:i:1-2:p:5-27
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    Cited by:

    1. Thilo Glebe & Klaus Salhofer, 2007. "EU agri‐environmental programs and the “restaurant table effect”," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 211-218, September.
    2. Alice Nicole Sindzingre, 2007. "Poverty traps: a perspective from development economics," EconomiX Working Papers 2007-26, University of Paris Nanterre, EconomiX.
    3. Claudio Djissey Shikida IBMEC-MG, 2003. "Could we build a bridge between Austrian Economics and New Institutional Economics? A Pré-History of the Soft Budget Constraint," Method and Hist of Econ Thought 0307002, University Library of Munich, Germany.

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