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The Costs of Equal Land Distribution: The Case of the Israeli Moshavim

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  • Peter Berck
  • Amnon Levy

Abstract

Equal land distribution achieved by government policy may adversely affect aggregate output. Israeli moshavim (cooperative villages) operate under an equal land allocation rule. This study assesses the production and distributional consequences of three alternative hypothetical allocation rules: a free market allocation, a value-maximizing policy of distributing land to current farmers, and a policy that maximizes value-added without discrimination based on nativity or ethnicity. Production and supply functions are estimated using sample data on Israeli family farms. Then the four allocation rules are simulated. The output loss from distributing land equally is found to be modest compared to the income inequality generated by the other rules.

Suggested Citation

  • Peter Berck & Amnon Levy, 1986. "The Costs of Equal Land Distribution: The Case of the Israeli Moshavim," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 605-614.
    • Handle: RePEc:oup:ajagec:v:68:y:1986:i:3:p:605-614.
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    File URL: http://hdl.handle.net/10.2307/1241544
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    Cited by:

    1. Ayal Kimhi, 2009. "Pension Wealth And Intergenerational Succession In Family Businesses," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 177-188.
    2. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    3. Meie Deng & Anlu Zhang, 2020. "Market Efficiency under the Arrangement of Transaction Rules of the RCCL Market from the Supply-Side Perspective," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    4. Levins, Richard A. & Lopez, Ramon E., 1988. "Agricultural Supply Response and Industry Structure," Working Papers 197603, University of Maryland, Department of Agricultural and Resource Economics.
    5. Kimhi, Ayal, 1992. "The Life-Cycle of Agricultural Cooperative: Evidence from Israeli Moshavim," Working Papers 197769, University of Maryland, Department of Agricultural and Resource Economics.

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