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Status and Incentives

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  • Jon Reiersen
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    Abstract

    By exploring problems of risk, asymmetric information and missing markets, development microeconomics have made progress in explaining the underlying rationale and consequences of different contractual arrangements often observed in poor agrarian economies. But the recent theoretical literature has left little room for influences arising from cultural values and norms. By recognizing that individual behavior is socially embedded it is possible to reach a fuller understanding of agrarian organization in the Third World. This point is illustrated by using the land-lease market in Bangladesh as an example. By incorporating a quest for status into a model of sharecropping I seek to explain the well documented fact that landless farm-workers are almost excluded from the land lease market in Bangladesh.

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    File URL: http://www.nopecjournal.org/NOPEC_2004_a09.pdf
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    Bibliographic Info

    Article provided by Nordic Journal of Political Economy in its journal Nordic Journal of Political Economy.

    Volume (Year): 30 (2004)
    Issue (Month): ()
    Pages: 121-128

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    Handle: RePEc:noj:journl:v:30:y:2004:p:121-128

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    Web page: http://www.nopecjournal.org

    Related research

    Keywords: social status; incentives; sharecropping;

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    References

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    1. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
    2. Yoram Weiss & Chaim Fershtman, 1997. "Social Status and Economic Performance: A Survey," University of Chicago - George G. Stigler Center for Study of Economy and State 139, Chicago - Center for Study of Economy and State.
    3. Corneo, Giacomo & Jeanne, Olivier, 1999. "Social Organization in an Endogenous Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 711-25, August.
    4. Harold L. Cole & George J. Mailath & Andrew Postlewaite, . ""Class Systems and the Enforcement of Social Norms''," CARESS Working Papres 96-04, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    5. Hanming Fang, 2001. "Social Culture and Economic Performance," American Economic Review, American Economic Association, vol. 91(4), pages 924-937, September.
    6. Herbert Gintis & Samuel Bowles & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior, and Earnings," American Economic Review, American Economic Association, vol. 91(2), pages 155-158, May.
    7. Singh, I., 1988. "Tenancy In South Asia," World Bank - Discussion Papers 32, World Bank.
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