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Public Choice

, Volume 127, Issue 3–4, pp 385–405 | Cite as

Market Failures and Government Failures: A Theoretical Model of the Common Agricultural Policy

  • Peter NedergaardEmail author
Article

Abstract

Economic theory has tried to explain the characteristics of the Common Agricultural Policy inductively on the basis of certain economic peculiarities of agriculture. However, by overlooking the so–called government failures of the political system as an independent variable in explaining the Common Agricultural Policy it is impossible to explain, for example, the strong agricultural lobbyism. The deductive theoretical model of this article integrates economic as well as political actors in order to explain the characteristics of the Common Agricultural Policy. The proposed theoretical model is not “tested”, but the criteria for such a test are presented.

Keywords

Political System Market Failure Agricultural Policy Political Decision Common Agricultural Policy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media, Inc. 2006

Authors and Affiliations

  1. 1.International Center for Business and Politics Copenhagen Business SchoolFrederiksbergDenmark

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