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Political reforms and public policy : evidence from agricultural and food policies

  • Olper, Alessandro
  • Fatkowski, Jan
  • Swinnenm Johan

This paper studies the effect of political regime transitions on public policy using a new data set on global agricultural and food policies over a 50-year period (including data from 74 developing and developed countries over the 1955–2005 period). The authors find evidence that democratization leads to a reduction of agricultural taxation, an increase in agricultural subsidization, or both. The empirical findings are consistent with the predictions of the median voter model because political transitions occurred primarily in countries with a majority of farmers. The results are robust to different specifications, estimation approaches, and variable definitions.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6336.

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Date of creation: 01 Jan 2013
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Handle: RePEc:wbk:wbrwps:6336
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  8. Beghin, John C & Kherallah, Mylene, 1994. "Political Institutions and International Patterns of Agricultural Protection," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 482-89, August.
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  17. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
  18. Johan F.M. Swinnen & Scott Rozelle, 2009. "Governance Structures and Resource Policy Reform: Insights from Agricultural Transition," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 33-54, 09.
  19. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
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  21. Olper, Alessandro, 2007. "Land inequality, government ideology and agricultural protection," Food Policy, Elsevier, vol. 32(1), pages 67-83, February.
  22. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium Princeton University Press.
  23. De Gorter, Harry & Swinnen, Johan, 2002. "Political economy of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 36, pages 1893-1943 Elsevier.
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