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Endogenous Commodity Policies and the Social Benefits from Public Research Expenditures

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  • Johan F.M. Swinnen
  • Harry de Gorter

Abstract

Standard analyses of social benefits of public agricultural research expenditures in the presence of commodity policies take the commodity policy as fixed. In reality governments adjust commodity policy levels when the research has important income distributional effects. We use two examples of commodity policies to analyze the consequences of endogenizing commodity policies under three alternative decision-making models of government. Relaxing the assumption of fixed commodity policies has important impacts on conclusions regarding the social benefits of research in the presence of commodity policies. Copyright 1998, Oxford University Press.

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  • Johan F.M. Swinnen & Harry de Gorter, 1998. "Endogenous Commodity Policies and the Social Benefits from Public Research Expenditures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 107-115.
    • Handle: RePEc:oup:ajagec:v:80:y:1998:i:1:p:107-115
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    1. Julian M. Alston & Will J. Martin, 1995. "Reversal of Fortune: Immiserizing Technical Change in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 251-259.
    2. Julian M. Alston & Geoff W. Edwards & Professor John W. Freebairn, 1988. "Market Distortions and Benefits from Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 281-288.
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    4. Gorter, H. de & Nielson, D. & Rausser, Gordon C., 1992. "Productive and Predatory Public Policies," Staff General Research Papers Archive 732, Iowa State University, Department of Economics.
    5. Johan F. M. Swinnen, 1994. "A Positive Theory of Agricultural Protection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 1-14.
    6. Murphy, John A. & Furtan, W. Hartley & Schmitz, Andrew, 1993. "The gains from agricultural research under distorted trade," Journal of Public Economics, Elsevier, vol. 51(2), pages 161-172, June.
    7. Harry de Gorter & Yacov Tsur, 1991. "Explaining Price Policy Bias in Agriculture: The Calculus of Support-Maximizing Politicians," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1244-1254.
    8. Harry de Gorter & David J. Nielson & Gordon C. Rausser, 1992. "Productive and Predatory Public Policies: Research Expenditures and Producer Subsidies in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 27-37.
    9. Lichtenberg, Erik & Zilberman, David, 1986. "The Welfare Economics of Price Supports in U.S. Agriculture," American Economic Review, American Economic Association, vol. 76(5), pages 1135-1141, December.
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    Cited by:

    1. Francois, Joseph & Nelson, Douglas R., 2014. "Political support for trade policy in the European Union," European Journal of Political Economy, Elsevier, vol. 36(C), pages 243-253.
    2. de Gorter, Harry, 2008. "Explaining Inefficient Policy Instruments," Agricultural Distortions Working Paper Series 48638, World Bank.
    3. de Gorter, Harry & Just, David R., 2007. "The Welfare Economics of an Excise-Tax Exemption for Biofuels and the Interaction Effects with Farm Subsidies," Working Papers 127014, Cornell University, Department of Applied Economics and Management.
    4. 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.
    5. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    6. Pokrivcak, Jan & Swinnen, Johan F.M., 2002. "Agenda Setting, Influence, And Voting Rules: The Influence Of The European Commission And Status Quo Bias In The Common Agricultural Policy Of The Eu," 2002 Annual meeting, July 28-31, Long Beach, CA 19868, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. 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.
    8. Dillen, Koen & Demont, Matty & Tollens, Eric, 2008. "The Global Welfare Effects of GM Sugar Beet under Changing Sugar Policies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43944, European Association of Agricultural Economists.
    9. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535, September.
    10. Thilo Glebe & Klaus Salhofer, 2007. "EU agri‐environmental programs and the “restaurant table effect”," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 211-218, September.
    11. Jeon, Sang-Gon, 2008. "Estimation of Political Oligopoly Power of Domestic Producers in the Korean Raw-Milk Market," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(5), pages 1-23, November.
    12. de Gorter, Harry & Just, David R., 2007. "The Welfare Economics of an Excise-Tax Exemption for Biofuels," MPRA Paper 5151, University Library of Munich, Germany, revised Sep 2007.

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