IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Political Economy Of Systematic Government Intervention In Agriculture

Listed author(s):
  • Sarker, Rakhal
  • Meilke, Karl D.
  • Hoy, Michael

The systematic subsidization and exploitation of agriculture by developed and developing countries respectively, has generated a policy paradox for which there is no satisfactory explanation. This paper attempts to provide an explanation of this policy paradox. It first develops a simple political economy model which treats an interest group's relative political weight as endogenous. Interest groups compete in the political market to improve their relative political weight. This relative political weight appears as a parameter in the government's political preference function. The government maximizes the value of this function subject to the constraints imposed by the economic market to determine the level of a policy. The model is then estimated for wheat using data for twelve developed and thirteen developing countries from 1958 to 1987.The estimation results for developed and developing countries provide empirical support for the theoretical conjectures. The results suggest that sustainable policy reform in agriculture may not be possible if the political economy of agriculture price policies in developed and developing countries are ignored.

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.

File URL:
Download Restriction: no

Paper provided by University of Guelph, Department of Food, Agricultural and Resource Economics in its series Working Papers with number 123574.

in new window

Date of creation: 1991
Handle: RePEc:ags:uguewp:123574
Contact details of provider: Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:uguewp:123574. 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: (AgEcon Search)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.