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How American Sugar Buys Protection sample essay

1. The US General Accounting Office (2002) estimates that the sugar program cost domestic sweetener users about $1. 5 billion in 1996 and about $1. 9 billion in 1998. Can you validate this statement by using Probit and Tobit analysis. 2. What diagnostics are generally (multicollinearity and normality? ) run on Tobit and Probit? Do the diagnostics method differ for binomial and multinomial (say trinomial) probit? 3. “Sugar takes into account the potential influence ( power) of a party in allocating its contributions”- Explain the statement.

Also give examples to prove your explanation. 4. There exists a relationship between campaign contributions and the state a Senator represents—Explain this statement and use Probit and Tobit analysis to prove your answer.


US General Accounting Office (2002). Sugar Program: Supporting Sugar Prices Has Increased Users’ Costs While Benefiting Producers, GAO/RCED-00-126. http://faculty. washington. edu/belas/543/GAOSugar. pdf.

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