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Campaign Contributions and Agricultural Subsidies

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  • Rigoberto A. Lopez

Abstract

This article examines the influence of campaign contributions on agricultural subsidies. Empirical results revealed that rent‐seeking works, i.e. contributions, influence agricultural subsidies in the manner they best serve contributors' economic interests. Eliminating campaign contributions would significantly decrease agricultural subsidies, hurt farm groups, benefit consumers and taxpayers, and increase social welfare by approximately $5.5 billion. Although contributions are not the only determinants of agricultural subsidies, investment returns to farm PAC contributors are quite high ($1 in contributions brings about $2,000 in policy transfers). In fact, the results are in sharp contrast to the “truthful contributions” assumption of the Grossman–Helpman model.

Suggested Citation

  • Rigoberto A. Lopez, 2001. "Campaign Contributions and Agricultural Subsidies," Economics and Politics, Wiley Blackwell, vol. 13(3), pages 257-279, November.
    • Handle: RePEc:bla:ecopol:v:13:y:2001:i:3:p:257-279
    DOI: 10.1111/1468-0343.00093
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    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
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    6. Lopez, Rigoberto A & Pagoulatos, Emilio, 1996. "Trade Protection and the Role of Campaign Contributions in U.S. Food and Tobacco Industries," Economic Inquiry, Western Economic Association International, vol. 34(2), pages 237-248, April.
    7. Honma, Masayoshi & Hayami, Yujiro, 1986. "Structure of agricultural protection in industrial countries," Journal of International Economics, Elsevier, vol. 20(1-2), pages 115-129, February.
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    Cited by:

    1. Bellemare, Marc F. & Carnes, Nicholas, 2015. "Why do members of congress support agricultural protection?," Food Policy, Elsevier, vol. 50(C), pages 20-34.
    2. Rigoberto A. Lopez & Xenia Matschke, 2006. "Food Protection for Sale," Review of International Economics, Wiley Blackwell, vol. 14(3), pages 380-391, August.
    3. Gawande, Kishore & Hoekman, Bernard, 2006. "Lobbying and Agricultural Trade Policy in the United States," International Organization, Cambridge University Press, vol. 60(3), pages 527-561, July.
    4. Lopez, Rigoberto A. & Hathie, Ibrahima, 2002. "Is Protection for Sale in U.S. Food Industries?," Research Reports 25182, University of Connecticut, Food Marketing Policy Center.
    5. Frýd, Lukáš & Sokol, Ondřej, 2021. "Relationships between technical efficiency and subsidies for Czech farms: A two-stage robust approach," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    6. Lopez, Rigoberto A. & He, Xi & De Falcis, Eleonora, 2017. "What Drives China’s New Agricultural Subsidies?," World Development, Elsevier, vol. 93(C), pages 279-292.
    7. Wagner, Gary A. & Elder, Erick M., 2021. "Campaigning for retirement: State teacher union campaign contributions and pension generosity," European Journal of Political Economy, Elsevier, vol. 68(C).
    8. Christian Cox, 2020. "Campaign Contributions by Non‐profit Executives and Government Grants," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 916-933, August.
    9. Per G. Fredriksson & Khawaja A. Mamun, 2014. "Tobacco Politics and Electoral Accountability in the United States," Public Finance Review, , vol. 42(1), pages 4-34, January.
    10. Rigoberto A. Lopez, 2008. "Does ‘Protection for Sale’ Apply to the US Food Industries?," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 25-40, February.
    11. Allcott, Hunt & Lederman, Daniel & Lopez, Ramon, 2006. "Political institutions, inequality, and agricultural growth : the public expenditure connection," Policy Research Working Paper Series 3902, The World Bank.
    12. Ștefan-Mihai PETREA & Dragos Sebastian Cristea & Maria Magdalena Turek Rahoveanu & Cristina Gabriela Zamfir & Adrian Turek Rahoveanu & Gheorghe Adrian Zugravu & Dumitru Nancu, 2020. "Perspectives of the Moldavian Agricultural Sector by Using a Custom-Developed Analytical Framework," Sustainability, MDPI, vol. 12(11), pages 1-40, June.

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