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THE POLITICAL ECONOMY OF U.S. WHEAT LEGISLATION
Author(s) -
Babcock BRUCe A.,
Carter COLIN A.,
Schmitz ANDREW
Publication year - 1990
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1990.tb00820.x
Subject(s) - taxpayer , subsidy , economics , legislation , competition (biology) , politics , production (economics) , export subsidy , public economics , microeconomics , market economy , macroeconomics , law , ecology , biology , political science
Both taxpayer subsidies to U.S. wheat producers and domestic deadweight losses increased as a result of the U.S. wheat program adopted in 1985. A calculation of the costs and benefits of alternative wheat policies shows that mandatory production controls with no taxpayer expense could have made wheat producers as well off as the adopted policy. Becker's theory of competition among interest groups and Peltzman's theory of the equilibrium amount of regulation are shown to be consistent with the observed policy choice if the list of fnfected interest groups includes agricultural input suppliers and grain marketing firms.