Agricultural Policies in Oecd Countries: What Can We Learn From Political Economy Models?

The ability of the political economy literature to explain agricultural policies in OECD countries is reviewed, with a view to discerning how positive theories of protection can inform normative policy analysis. Recognition of the endogeneity of agricultural policy is seen to serve three important functions. First, it lays bare the fundamental constraints under which policymakers operate. Second, it implies a revision of the traditional calculus of welfare effects. Third, it may help reduce Downsian “rational ignorance” with respect to both policy causes and policy consequences. Whilst the literature suffers from practical limitations, political economy insights may form the basis for interdisciplinary research into the effects of procedural reform.