TY - JOUR
T1 - Explaining price policy bias in agriculture
T2 - The calculus of support-maximizing politicians
AU - Gorter, Harry De
AU - Tsur, Yacov
PY - 1991/11
Y1 - 1991/11
N2 - A model is developed to explain observed patterns of policy intervention in agriculture. We analyze the interaction between political support-seeking politicians and support- supplying citizens. Society consists of a rural and urban group. We determine the effects on transfers of relative group size, disparities in income endowments between groups, and the deadweight loss of redistribution. The framework advanced is an alternative to that of the interest group model and is used to explain, for example, why the export sectors in developing countries are taxed more and why the United Kingdom is less adamant for higher price supports than Germany.
AB - A model is developed to explain observed patterns of policy intervention in agriculture. We analyze the interaction between political support-seeking politicians and support- supplying citizens. Society consists of a rural and urban group. We determine the effects on transfers of relative group size, disparities in income endowments between groups, and the deadweight loss of redistribution. The framework advanced is an alternative to that of the interest group model and is used to explain, for example, why the export sectors in developing countries are taxed more and why the United Kingdom is less adamant for higher price supports than Germany.
KW - Group size
KW - Income endowments
KW - Price bias
KW - Redistributed income
UR - http://www.scopus.com/inward/record.url?scp=84959786730&partnerID=8YFLogxK
U2 - 10.2307/1242452
DO - 10.2307/1242452
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AN - SCOPUS:84959786730
SN - 0002-9092
VL - 73
SP - 1244
EP - 1254
JO - American Journal of Agricultural Economics
JF - American Journal of Agricultural Economics
IS - 4
ER -
