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The Economic Implications of Farm Interest Groups' Beliefs

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  • James Vercammen
  • Murray Fulton

Abstract

It is usually assumed that interest groups fully understand their economic environment. A method of determining the economic beliefs of farm interest groups and of examining the implications for the groups if these beliefs do not conform to reality is presented. The approach obtains estimates of the perceived beliefs of a group from knowledge of its actions and assumptions regarding its objectives. A comparison of the optimal policy recommendations with those based on the perceived beliefs provides an indication of the benefits of conformity. An example involving farm organizations in western Canada illustrates the use of the method.

Suggested Citation

  • James Vercammen & Murray Fulton, 1990. "The Economic Implications of Farm Interest Groups' Beliefs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(4), pages 851-863.
    • Handle: RePEc:oup:ajagec:v:72:y:1990:i:4:p:851-863.
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    File URL: http://hdl.handle.net/10.2307/1242617
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