RENT SEEKING AND THE COMMON AGRICULTURAL POLICY: DO MEMBER COUNTRIES FREE RIDE ON LOBBYING?

William Hartley Furtan, Maria Skovager Jensen and Johannes Sauer

No 52649, 48th Annual Conference, Bonn, Germany, September 24-26, 2008 from German Association of Agricultural Economists (GEWISOLA)

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%.

Keywords: Agricultural and Food Policy; Institutional and Behavioral Economics (search for similar items in EconPapers)
Pages: 13
Date: 2008-09
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gaae08:52649

DOI: 10.22004/ag.econ.52649

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