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Endogenous Matching and Contractual Choice among Rice Farmers in Bangladesh

Author

Listed:
  • Ahmed , Sharmina

    (School of Economics, University of Adelaide, Australia)

  • Findlay, Christopher

    (School of Economics, University of Adelaide, Australia)

Abstract

This paper examines the presence of potential bias arising from multiple sources of endogenous matching among the landlords, tenants and activities while choosing between crop sharing contract and fixed rent contract in the agricultural farming system. The study addresses this endogenous matching problem using data from rice farmers in rural Bangladesh. Although risk sharing explanation is found consistent with naïve estimation after controlling for possible sources of matching, it is found not to have significant influence on choosing a particular tenancy contract.

Suggested Citation

  • Ahmed , Sharmina & Findlay, Christopher, 2011. "Endogenous Matching and Contractual Choice among Rice Farmers in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 34(4), pages 37-54, December.
    • Handle: RePEc:ris:badest:0526
    as

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    References listed on IDEAS

    as
    1. Daniel A. Ackerberg & Maristella Botticini, 2002. "Endogenous Matching and the Empirical Determinants of Contract Form," Journal of Political Economy, University of Chicago Press, vol. 110(3), pages 564-591, June.
    2. Serfes, Konstantinos, 2005. "Risk sharing vs. incentives: Contract design under two-sided heterogeneity," Economics Letters, Elsevier, vol. 88(3), pages 343-349, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Rice Farmers; Bangladesh; Endogenous Matching; Contractual Choice;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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