An Empirical Estimation of the Probability of Agricultural Subsidies for Wheat
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The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.
CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.
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Abstract
In the last decade there has been an increasing interest in the political economy of agricultural protection (PEAP). A recent development is the treatment of policy intervention as endogenous rather than exogenous, within a public choice framework. The authors investigate the prominent determinants of agricultural protection across industrialized and developing countries. They find evidence that producer subsidy equivalents (PSEs) provide the widest coverage of effects of different policy instruments.