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Predatory Versus Productive Government: The Case of U.S. Agricultural Policies

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  • Rausser, Gordon C.
Abstract
This essay will argue that agricultural policy in the United States has led to both the enhancement of efficiency through "productive policies" and the transfer of wealth and income to special interests through redistributive or "predatory policies." These two activities can be labeled as PESTs and PERTs. PEST policies, or political-economic-seeking transfers, are meant to redistribute wealth from one social group to another and are not explicitly concerned with efficiency. In contrast, PERTs, or political-economic resource transactions, are intended to correct market failures or to provide public goods; these policies have neutral distributional effects, at least in design. A review of the history of public policy in agriculture reveals not only tension between the PERT and PEST roles of the public sector, but also some coordination between these two types of activities. As different interest groups pressure the political process, the government trades off PESTs and PERTs in its attempts to acquire, balance, and secure political power. At times this has led to combinations of programs that appear incoherent. In such a world, the challenge for economists is to design and advocate policies that are both economically productive and politically sustainable.
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Suggested Citation

  • Rausser, Gordon C., 1992. "Predatory Versus Productive Government: The Case of U.S. Agricultural Policies," Staff General Research Papers Archive 724, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:724
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    as
    1. Roningen, Vernon O. & Dixit, Praveen M., 1989. "Economic Implications Of Agricultural Policy Reforms In Industrial Market Economies," Staff Reports 278843, United States Department of Agriculture, Economic Research Service.
    2. William E. Foster & Gordon C. Rausser, 1991. "Farmer Behavior under Risk of Failure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 276-288.
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    6. Harry de Gorter & David J. Nielson & Gordon C. Rausser, 1992. "Productive and Predatory Public Policies: Research Expenditures and Producer Subsidies in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 27-37.
    7. Gordon C. Rausser & Pinhas Zusman, 1992. "Public Policy and Constitutional Prescription," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 247-257.
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    9. Rausser, Gordon C, 1974. "Technological Change, Production, and Investment in Natural Resource Industries," American Economic Review, American Economic Association, vol. 64(6), pages 1049-1059, December.
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    11. Gorter, H. de & Nielson, D. & Rausser, Gordon C., 1992. "Productive and Predatory Public Policies," Staff General Research Papers Archive 732, Iowa State University, Department of Economics.
    12. Gordon C. Rausser, 1982. "Political Economic Markets: PERTs and PESTs in Food and Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(5), pages 821-833.
    13. Gordon C. Rausser, 1982. "Political Economic Markets: PERTs and PESTs in Food and Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(5), pages 821-833.
    14. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April.
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    16. Gordon Rausser & Richard Howitt, 1975. "Stochastic Control of Environmental Externalities," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 2, pages 271-292, National Bureau of Economic Research, Inc.
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    18. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
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    20. Zusman, Pinhas, 1976. "The Incorporation and Measurement of Social Power in Economic Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 447-462, June.
    21. Reichelderfer, Katherine H., 1985. "Do USDA Farm Program Participants Contribute to Soil Erosion?," Agricultural Economic Reports 307990, United States Department of Agriculture, Economic Research Service.
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    More about this item

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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