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Agricultural policy: Banktruptcy of a ‘monodisciplinary’ economic approach

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  • STEPHANUS L. LOUWES

Abstract

A confrontation of the findings of agricultural economics with the actual accomplishments of agricultural policy and behaviour of farmers reveals the existence of a wide gap between economic theory and reality. One of the reasons for this is that a politician is not a homo oeconomicus but a homo politicus who reacts on the premises of various groups from whom he needs or seeks political support. This may divert him from the path of economic rationality shown by agricultural economists. Agriculture economics, on the other hand, has not succeeded in providing adequate explanations for the economic conduct of farmers, particularly with regard to the termination of farms and has tende to neglect the influence of collective actions directed to the protection of their economic position in the short run, preferably by means of the price policy. The author proposes an interdisciplinary approach, based on systems theory, directed to the analysis of the system of agricultural policy and its various sub-systems such as individual farms, farm organizations, etc.

Suggested Citation

  • Stephanus L. Louwes, 1973. "Agricultural policy: Banktruptcy of a ‘monodisciplinary’ economic approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 1(2), pages 191-212.
    • Handle: RePEc:oup:erevae:v:1:y:1973:i:2:p:191-212.
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    File URL: http://hdl.handle.net/10.1093/erae/1.2.191
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