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Influence of Political Campaign Contributions by American Agribusiness Firms on U.S. Farm Policy


  • Serrao, Amilcar


This study adapts Ndayisenga and Kinsey's econometric model of the allocation of political campaign contributions by agribusiness firms. This model combines information on campaign contributions for political influence with the behavior assumption of profit maximization to test the hypotheses that agribusiness firms do not lobby against farm policies. Model results support the hypotheses and show that lobbying expenditure in output markets is statistically significant, and that political campaign contributions to the Democratic Party significantly correlate with agribusiness firms' profits. The conclusions of this study provide useful information about the intentions of agribusiness firms that participate in the political market, but the results should be carefully interpreted.

Suggested Citation

  • Serrao, Amilcar, 2002. "Influence of Political Campaign Contributions by American Agribusiness Firms on U.S. Farm Policy," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24855, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae02:24855

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    References listed on IDEAS

    1. Bhagwati, Jagdish N., 1980. "Lobbying and welfare," Journal of Public Economics, Elsevier, vol. 14(3), pages 355-363, December.
    2. Cairns, Robert D., 1989. "Dynamic rent seeking," Journal of Public Economics, Elsevier, vol. 39(3), pages 315-334, August.
    3. Wellisz, Stanislaw & Wilson, John D., 1986. "Lobbying and tariff formation: A deadweight loss consideration," Journal of International Economics, Elsevier, vol. 20(3-4), pages 367-375, May.
    4. Bhagwati, Jagdish N & Srinivasan, T N, 1980. "Revenue Seeking: A Generalization of the Theory of Tariffs," Journal of Political Economy, University of Chicago Press, vol. 88(6), pages 1069-1087, December.
    5. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
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