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On Moral Hazard and Cost Sharing under Sharecropping

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  • Pranab Bardhan
  • Nirvikar Singh

Abstract

In this article we show that when the tenant's input use is not observable by the landlord, there will be cost sharing at the margin (instead of a lump sum transfer) if the standard model is extended to include cases of imperfection and interlinkage of transactions in rural markets, thus making the opportunity cost of inputs different for the landlord and the tenant.

Suggested Citation

  • Pranab Bardhan & Nirvikar Singh, 1987. "On Moral Hazard and Cost Sharing under Sharecropping," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 382-383.
    • Handle: RePEc:oup:ajagec:v:69:y:1987:i:2:p:382-383.
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    File URL: http://hdl.handle.net/10.2307/1242289
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    Citations

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    Cited by:

    1. Sen, Debapriya, 2011. "A theory of sharecropping: The role of price behavior and imperfect competition," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 181-199.
    2. Arcand, Jean-Louis & Ai, Chunrong & Ethier, Francois, 2007. "Moral hazard and Marshallian inefficiency: Evidence from Tunisia," Journal of Development Economics, Elsevier, vol. 83(2), pages 411-445, July.
    3. Tim Swanson & Ben Groom, 2012. "Regulating global biodiversity: what is the problem?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(1), pages 114-138, Spring.
    4. Wang, Sen & van Kooten, G. Cornelis & Wilson, Bill, 2000. "Remuneration for silviculture in British Columbia: insights from transaction cost economics," Forest Policy and Economics, Elsevier, vol. 1(1), pages 71-79, May.
    5. M. A. Taslim, 1992. "A Survey of Theories of Cropshare Tenancy," The Economic Record, The Economic Society of Australia, vol. 68(3), pages 254-275, September.
    6. Debapriya Sen, 2005. "Sharecropping, interlinkage, and price variation," Department of Economics Working Papers 05-10, Stony Brook University, Department of Economics.
    7. Ai, Chunrong & Arcand, Jean-Louis & Éthier, François, 1998. "Inefficacité marshallienne, partage de coûts et modèles contractuels avec marchés manquants," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(3), pages 315-341, septembre.

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