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On the Political Economy of Public Good Inputs in Agriculture

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  • Harry de Gorter
  • David Zilberman

Abstract

The paper analyzes two elements in explaining and prescribing the level of cost-reducing “public good” inputs in agriculture: the distribution of political influence and the economic properties of markets. The incidence of costs/benefits of alternative cost-sharing arrangements between taxpayers and producers is compared to the social optimal and competitive outcomes. Although one group could lose, we focus only on situations of a Pareto improvement. The model predicts why some sectors have relatively more public versus private research funding and why the degree of underinvestment varies across sectors. The observed underinvestment in agriculture may be due to the political power of farmers, inelastic demand, and highly productive public good inputs.

Suggested Citation

  • Harry de Gorter & David Zilberman, 1990. "On the Political Economy of Public Good Inputs in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 131-137.
    • Handle: RePEc:oup:ajagec:v:72:y:1990:i:1:p:131-137.
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    File URL: http://hdl.handle.net/10.2307/1243152
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    Citations

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    Cited by:

    1. Alston, Julian M. & Freebairn, John W. & James, Jennifer S., 2004. "Levy-funded research choices by producers and society," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-32.
    2. Swinnen, Johan F. M. & Gorter, Harry de & Rausser, Gordon C. & Banerjee, Anurag N., 2000. "The political economy of public research investment and commodity policies in agriculture: an empirical study," Agricultural Economics, Blackwell, vol. 22(2), pages 111-122, March.
    3. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana III. Vegyes motívumok az agrárpolitikában: termelő és ragadozó politikák [The political economy of agrarian policy. Part III. Mixed motives in agrarian polic," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 424-436.
    4. de Gorter, Harry & Swinnen, Johan F.M., 1996. "The Impact Of Economic Development On Redistributive And Public Research Policies In Agriculture," Working Papers 127931, Cornell University, Department of Applied Economics and Management.
    5. Roseboom, Johannes, 2002. "A New Perspective On Underinvestment In Agricultural R&D," 2002 Annual meeting, July 28-31, Long Beach, CA 19648, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Parker, Douglas D. & Zilberman, David, 1994. "The Distributional Effects Of Private Sector R&D Management: In-House And At Public Institutions," 1994 Annual Meeting, August 7-10, San Diego, California 271415, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. De Gorter, Harry & Swinnen, Jo, 1995. "The Political Economy and Institutional Determinants of Public Policy in Agriculture," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183390, International Association of Agricultural Economists.
    8. Wasantha Athukorala & Clevo Wilson, 2017. "Distributional impacts of irrigation-induced agricultural development in a semi-subsistence economy: new evidence," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 59-75, January.
    9. Barrows, Geoffrey & Sexton, Steven & Zilberman, David, 2014. "The impact of agricultural biotechnology on supply and land-use," Environment and Development Economics, Cambridge University Press, vol. 19(6), pages 676-703, December.

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