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Rationing and Adjustment in the Market for Tenancies: The Behavior of Landowning Households in Thanjavur District

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  • Clive Bell
  • Chalongphob Sussangkarn

Abstract

A large proportion of peasants cultivate only their own land, even when there are active markets for tenancies as well as labor. However, rationing of tenancies can occur under moral hazard or adverse selection. A model that includes as possible outcomes both rationing and full adjustment through trading is analyzed and estimated using data from South India. On this basis, households can be characterized as rationed or adjusted, and confidence intervals for these assignments can be calculated. While some households achieved full adjustment, a majority were rationed in the tenancy market, many of them completely.

Suggested Citation

  • Clive Bell & Chalongphob Sussangkarn, 1988. "Rationing and Adjustment in the Market for Tenancies: The Behavior of Landowning Households in Thanjavur District," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 779-789.
    • Handle: RePEc:oup:ajagec:v:70:y:1988:i:4:p:779-789.
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    File URL: http://hdl.handle.net/10.2307/1241919
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    Cited by:

    1. Jeetendra P. Aryal & Stein T. Holden, 2012. "Livestock and land share contracts in a Hindu society," Agricultural Economics, International Association of Agricultural Economists, vol. 43(5), pages 593-606, September.
    2. Baland, Jean-Marie & Gaspart, Frederic & Platteau, Jean-Philippe & Place, Frank, 2007. "The Distributive Impact of Land Markets in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 283-311, January.
    3. Klaus Deininger & Daniel Ayalew Ali & Tekie Alemu, 2008. "Assessing the Functioning of Land Rental Markets in Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 67-100, October.
    4. Holden, Stein T. & Deininger, Klaus & Ghebru, Hosaena, 2007. "Impact of Land Certification on Land Rental Market Participation in Tigray Region, Northern Ethiopia," MPRA Paper 5211, University Library of Munich, Germany.
    5. Holden, Stein T. & Ali, Daniel & Deininger, Klaus & Hilhorst, Thea, 2016. "A Land Tenure Module for LSMS," CLTS Working Papers 1/16, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    6. Gebru, Menasbo & Holden, Stein T. & Tilahun, Mesfin, 2017. "Can the land rental market facilitate smallholder commercialization? Evidence from northern Ethiopia," CLTS Working Papers 10/17, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 21 Oct 2019.
    7. Holden, Stein T. & Deininger, Klaus W. & Ghebru, Hosaena H., 2009. "Gender, Low-cost Land Certification, and Land Rental Market Participation," 2009 Conference, August 16-22, 2009, Beijing, China 51575, International Association of Agricultural Economists.
    8. Faruqee, Rashid & Carey, Kevin, 1997. "Research on land markets in South Asia : what have we learned?," Policy Research Working Paper Series 1754, The World Bank.

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