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Objectives and Constraints of Government Policy: The Countercyclicity of Transfers to Agriculture

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  • David S. Bullock

Abstract

Estimates of government transfers to typical U.S. corn, wheat, and cotton farms are regressed on estimates of market-derived farm income to show that U.S. farmers receive greater government transfers when they face relatively unfavorable market conditions. This transfer countercyclicity is shown to be unrelated to potential deadweight losses constraining government transfers. It is argued that prevailing political economy models have difficulty explaining transfer countercyclicity because they focus on political agents' constraints to the neglect of political agents' objectives.

Suggested Citation

  • David S. Bullock, 1992. "Objectives and Constraints of Government Policy: The Countercyclicity of Transfers to Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 617-629.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:3:p:617-629.
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    File URL: http://hdl.handle.net/10.2307/1242574
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    Cited by:

    1. Swinnen, Johan F. M. & Banerjee, Anurag N. & Gorter, Harry de, 2001. "Economic development, institutional change, and the political economy of agricultural protection: An econometric study of Belgium since the 19th century," Agricultural Economics, Blackwell, vol. 26(1), pages 25-43, October.
    2. Chenggang Wang, 2022. "Green Technology Innovation, Energy Consumption Structure and Sustainable Improvement of Enterprise Performance," Sustainability, MDPI, vol. 14(16), pages 1-21, August.
    3. 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.
    4. Bullock, David S. & Mittenzwei, Klaus, 2005. "Using Evolutionary Game Theory to Examine U.S. and EU Agricultural Policy Institutions," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24538, European Association of Agricultural Economists.
    5. Swinnen, Johan F.M., 2008. "The Political Economy of Agricultural Protection: Europe in the 19th and 20th Century," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43859, European Association of Agricultural Economists.
    6. Harsche, Johannes, 2006. "Räumlich Differenzierte Stabilisierungswirkungen Der Europäischen Agrarpolitik In Unterschiedlich Konditionierten Erzeugerregionen In Hessen," 46th Annual Conference, Giessen, Germany, October 4-6, 2006 14949, German Association of Agricultural Economists (GEWISOLA).
    7. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana II. Az agrárpolitikák magyarázata [The political economy of agrarian policy. Part II. Explanation of the agrarian policies]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 297-316.
    8. Harry de Gorter & Johan F. M. Swinnen, 1994. "The Economic Polity Of Farm Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(3), pages 312-326, September.
    9. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    10. Ndayisenga, Fidele & Kinsey, Jean D., 1995. "Transfers To Agriculture: Links To Lobbying," Working Papers 14435, University of Minnesota, Center for International Food and Agricultural Policy.
    11. Harsche, J., 2007. "Räumlich differenzierte Stabilisierungswirkungen der Europäischen Agrarpolitik in unterschiedlich konditionierten Erzeugerregionen in Hessen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    12. Crommelynck, Anja & Kola, Jukka & Swinnen, Johan F.M., 1998. "Determinants Of Agricultural Protection In Finland (1931-1990)," PRG Working Papers 31878, Katholieke Universiteit Leuven, LICOS - Centre for Institutions and Economic Performance.

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