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Rent Seeking and the Common Agricultural Policy: Do member countries free ride on lobbying?

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  • Furtan, William Hartley
  • Jensen, Maria Skovager
  • Sauer, Johannes

Abstract

The Common Agricultural Policy is modelled as a club good providing the European Union (EU) farmer with financial benefits. We build an economic model which explains how much farmers in individual EU countries invest in rent-seeking activities in order to test for free-riding behaviour on lobbying costs. For our investigation we group the EU member countries by farm structure, and the type of benefit received. We explain the fees paid by farmers for lobbying by other countries fees, political variables, and country and regional agricultural characteristics. The model shows that some member countries free ride on others. This suggests a form of policy path dependency and leads to a suboptimal investment on lobbying of 7.5%.

Suggested Citation

  • Furtan, William Hartley & Jensen, Maria Skovager & Sauer, Johannes, 2008. "Rent Seeking and the Common Agricultural Policy: Do member countries free ride on lobbying?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6600, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6600
    DOI: 10.22004/ag.econ.6600
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    Cited by:

    1. Katarzyna Kosior, 2011. "Koncepcje reform Wspólnej Polityki Rolnej Unii Europejskiej po 2013 roku," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5-6, pages 85-104.

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    Agricultural and Food Policy; International Relations/Trade; Political Economy;
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