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Ricardo and the farmers
Constitutional Political Economy Pub Date : 2023-05-26 , DOI: 10.1007/s10602-023-09404-1
Bengt-Arne Wickström

It is investigated under what conditions rents can be won through interference in the market through price subsidies. It is shown that owners of factors of production have an interest in price subsidies in the product market (which they can motivate with reference to “consumer interests”) only if the factor supply is not perfectly price elastic, the incentive for rent-seeking increasing as the price elasticity of supply decreases. It is further demonstrated that this can occur in the case of differential rents. Since differential rents are found primarily in the use of land, land owners, i.e. farmers, should have especially high incentives to engage in rent-seeking activities.



中文翻译:

里卡多和农民

研究在什么条件下可以通过价格补贴干预市场来赢得租金。结果表明,只有当要素供给不具有完全价格弹性时,生产要素所有者才对产品市场的价格补贴感兴趣(他们可以参考“消费者利益”来激励),寻租的激励增加随着供给的价格弹性下降。进一步证明,这可能发生在级差租金的情况下。由于级差地租主要存在于土地的使用中,土地所有者,即农民,应该有特别高的动机从事寻租活动。

更新日期:2023-05-26
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