Lobbying and Agricultural Trade Policy in the United States

The authors study whether political campaign contributions influence agricultural protection in the United States in the manner suggested by the political economy model of Grossman and Helpman (1994). This is the first attempt to test this model using agricultural data. The authors test the model using a detailed cross-sectional data set of agricultural protection, subsidies, and political action committee (PAC) contributions in the late 1990s. The model is qualitatively affirmed by the data. They make a novel attempt to solve a puzzle about the model's quantitative implications, also found in recent studies. This solution makes the simple model consistent with the complicated decisionmaking process in real world government. The results imply the underpinnings of a political economy equilibrium that will be hard to dislodge.

Bibliographic Details

Main Authors:	Gawande, Kishore, Hoekman, Bernard
Language:	English
Published:	World Bank, Washington, DC 2006-01
Subjects:	AGRICULTURAL COMMODITIES, AGRICULTURAL PRICE, AGRICULTURAL PRODUCTS, AGRICULTURAL SUPPORT, AGRICULTURAL SUPPORT POLICIES, AGRICULTURAL TRADE, AGRICULTURE, BORDER PROTECTION, CAMPAIGN CONTRIBUTIONS, COEFFICIENT ESTIMATE, COMPARATIVE ADVANTAGE, COMPARATIVE DISADVANTAGE, CONSUMER, CONSUMER SUBSIDY, CONSUMER SURPLUS, CONSUMERS, DEFICIENCY PAYMENTS, DEMAND ELASTICITIES, DEMAND ELASTICITY, DOMESTIC PRODUCTION, ECONOMETRIC MODELS, ECONOMICS LITERATURE, ELASTICITY, ENDOGENOUS VARIABLES, EQUILIBRIUM, EQUILIBRIUM THEORY, EXOGENOUS VARIABLES, EXPENDITURES, EXPORT RATIO, EXPORT SUBSIDIES, EXPORT SUPPLY, EXPORTS, FACTOR ENDOWMENTS, FOOD CONSUMPTION, FREE TRADE, GDP, IMPORT, IMPORT PENETRATION, IMPORT TARIFF, IMPORTS, INTERMEDIATE INPUTS, INTERNATIONAL TRADE, ITC, MARKET CONDITIONS, MARKET PRICE, MARKET PRICES, MARKET VALUE, POLITICAL ECONOMY, PRICE CONTROL, PRICE DISTORTIONS, PRICE SUPPORT, PRICE SUPPORTS, PRODUCTION COSTS, PROTECTION DATA, PROTECTION MEASURES, QUANTITATIVE RESTRICTIONS, SUPPLY ELASTICITY, TARIFF DATA, TARIFF REDUCTIONS, TARIFF REVENUE, TERMS OF TRADE, TRADE DATA, TRADE POLICY, TRADE PROTECTION, URUGUAY ROUND, VALUE ADDED, VALUE OF EXPORTS, WELFARE FUNCTION, WELFARE LOSS, WELFARE LOSSES, WELFARE OF CONSUMERS, WORLD MARKET, WORLD PRICES, WTO, ZERO TARIFF,
Online Access:	http://documents.worldbank.org/curated/en/2006/01/6530318/lobbying-agricultural-trade-policy-united-states https://hdl.handle.net/10986/8802
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