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Land Lease Markets And Agricultural Efficiency: Theory And Evidence From Ethiopia

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Author Info
Pender, John
Fafchamps, Marcel

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Abstract

This paper develops a theoretical model of land leasing that includes transaction costs of enforcing labor effort, risk pooling motives and non-tradable capital inputs. We test the implications of this model compared to those of the “"Marshallian”" (unenforceable labor effort) and “"New School”" (costlessly enforceable effort) perspectives using data collected from four villages in Ethiopia. We find that land lease markets operate relatively efficiently in the villages studied, supporting the New School perspective. Land contract choice is found to depend upon the social relationships between landlords and tenants, but differences in contracts are not associated with significant differences in input use or output value per hectare. We find that other household and village characteristics do affect input use and output value, suggesting imperfections in other factor markets.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2002 Annual meeting, July 28-31, Long Beach, CA with number 19796.

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Date of creation: 2002
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Handle: RePEc:ags:aaea02:19796

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Keywords: Land Economics/Use;

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References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Smale, Melinda & Hodgkin, T. & Zohrabian, Armineh & Day-Rubenstein, K., 2001. "The demand for crop genetic resources: international use of the U.S. National Plant Germplasm System," EPTD discussion papers 82, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  2. Holden, Stein & Yohannes, Hailu, 2001. "Land redistribution, tenure insecurity, and intensity of production: a study of farm households in southern Ethiopia," CAPRi working papers 21, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  3. Pender, John & Fafchamps, Marcel, 2002. "Land Lease Markets And Agricultural Efficiency: Theory And Evidence From Ethiopia," 2002 Annual meeting, July 28-31, Long Beach, CA 19796, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  4. Zhang, Xiaobo & Fan, Shenggen, 2001. "How productive is infrastructure?: new approach and evidence from rural India," EPTD discussion papers 84, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Cai, Ximing & McKinney, Daene C. & Rosegrant, Mark W., 2001. "Sustainability analysis for irrigation water management: concepts, methodology, and application to the Aral Sea region," EPTD discussion papers 86, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Jacoby, Hanan G. & Mansuri, Ghazala, 2006. "Incomplete contracts and investment : a study of land tenancy in Pakistan," Policy Research Working Paper Series 3826, The World Bank. [Downloadable!]
  7. Deininger, Klaus & Jin, Songqing & Adenew, Berhanu & Gebre-Selassie, Samuel & Nega, Berhanu, 2003. "Tenure security and land-related investment - evidence from Ethiopia," Policy Research Working Paper Series 2991, The World Bank. [Downloadable!]
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  8. Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2001. "How agricultural research affects urban poverty in developing countries: the case of China," EPTD discussion papers 83, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  9. Benin, Samuel & Place, Frank & Nkonya, Ephraim & Pender, John, 2006. "Land Markets and Agricultural Land Use Efficiency and Sustainability: Evidence from East Africa," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25645, International Association of Agricultural Economists. [Downloadable!]
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