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Altruism, moral hazard, and sharecropping

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  • Jiancai PI

    (Department of Economics, School of Business, Nanjing University, Nanjing, China)

Abstract

The paper provides a new explanation for the emergence of sharecropping in agriculture. Under the principal-agent moral hazard framework, the choice of the agrarian land lease contracts is discussed from the perspective of behavioural economics. The analyses show that the landlord and the tenant's behaviour patterns play an important role during the course of the contractual choice. Specifically, the combination of altruism and moral hazard can lead to sharecropping, which gives an explanation greatly different from the existing theoretical literature.

Suggested Citation

  • Jiancai PI, 2016. "Altruism, moral hazard, and sharecropping," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(12), pages 575-584.
    • Handle: RePEc:caa:jnlage:v:62:y:2016:i:12:id:219-2015-agricecon
    DOI: 10.17221/219/2015-AGRICECON
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    References listed on IDEAS

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    Cited by:

    1. Lina Novickyté, 2019. "Risk in agriculture: An overview of the theoretical insights and recent development trends during last decade - A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(9), pages 435-444.

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