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http://ssrn.com/abstract=1786347
 
 

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The Political Economy of Policy Instrument Choice: Theory and Evidence from Agricultural Policies


Johan F. M. Swinnen


KU Leuven - LICOS - Centrum voor Transitie-economie; European Commission, DG II

Alessandro Olper


Università degli Studi di Milano

Thijs Vandemoortele


LICOS Centre for Institutions and Economic Performance

March 4, 2011


Abstract:     
We study the political economy of instrument choice in agricultural and food policies. After a review of the historical evolution of European agricultural price and trade policy instruments since 1880, we develop a political economy model of instrument choice. The key predictions of the model suggest a rational explanation of instrument choice patterns, based on the trade-off between the different cost components of the policies, and internal and external political constraints. An empirical analysis supports the main predictions of the theoretical model. We find that the GATT/WTO agreement had a significant impact.

Number of Pages in PDF File: 49

Keywords: Political Economy, Instrument Choice, Agricultural Policy, GATT, WTO

JEL Classification: D78, Q18

working papers series


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Date posted: March 20, 2011  

Suggested Citation

Swinnen, Johan F. M. and Olper, Alessandro and Vandemoortele, Thijs, The Political Economy of Policy Instrument Choice: Theory and Evidence from Agricultural Policies (March 4, 2011). Available at SSRN: http://ssrn.com/abstract=1786347 or http://dx.doi.org/10.2139/ssrn.1786347

Contact Information

Johan F.M. Swinnen (Contact Author)
KU Leuven - LICOS - Centrum voor Transitie-economie ( email )
Waaistraat 6
Leuven, B-3000
Belgium
European Commission, DG II ( email )
Wetstrath 200
Office 15172
1049 Brussels
Belgium
+32-2-2960442 (Phone)
Not available (Fax)
Alessandro Olper
Università degli Studi di Milano ( email )
Via Celoria, 2
Milano, 20133
Italy
+390250316481 (Phone)
+390250316486 (Fax)
HOME PAGE: http://users.unimi.it/olper/
Thijs Vandemoortele
LICOS Centre for Institutions and Economic Performance ( email )
Waaistraat 5, bus 3511
Leuven, B-3000
Belgium
HOME PAGE: http://www.econ.kuleuven.be/thijs.vandemoortele
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