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A Protectionist Bias in Majoritarian Politics

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  • Gene M. Grossman
  • Elhanan Helpman

Abstract

We develop a novel model of campaigns, elections, and policy-making in which the ex ante objectives of national party leaders differ from the ex post objectives of elected legislators. This generates a distinction between "policy rhetoric" and "policy reality" and introduces an important role for "party discipline" in the policy-making process. We identify a protectionist bias in majoritarian politics. When trade policy is chosen by the majority delegation and legislators in the minority have limited means to influence choices, the parties announce trade policies that favor specific factors, and the expected tariff or export subsidy is positive. Positions and expected outcomes monotonically approach free trade as party discipline strengthens.

Suggested Citation

  • Gene M. Grossman & Elhanan Helpman, 2005. "A Protectionist Bias in Majoritarian Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(4), pages 1239-1282.
    • Handle: RePEc:oup:qjecon:v:120:y:2005:i:4:p:1239-1282.
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    File URL: http://hdl.handle.net/10.1162/003355305775097498
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    References listed on IDEAS

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    1. Gene M. Grossman & Elhanan Helpman, 2005. "Party Discipline and Pork Barrel Politics," NBER Working Papers 11396, National Bureau of Economic Research, Inc.
    2. Torsten Persson & Gerard Roland & Guido Tabellini, 2000. "Comparative Politics and Public Finance," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1121-1161, December.
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    6. Willmann, Gerald, 2003. "Why Legislators are Protectionists: The Role of Majoritarian Voting in Setting Tariffs," Economics Working Papers 2003-10, Christian-Albrechts-University of Kiel, Department of Economics.
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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