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Insecurity of property rights and matching in the tenancy market

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Author Info

  • Macours, Karen
  • de Janvry, Alain

    ()
    (University of California, Berkeley. Dept of agricultural and resource economics and policy)

  • Sadoulet, Elisabeth

    ()
    (University of California, Berkeley. Dept of agricultural and resource economics and policy)

Abstract

This paper analyzes the effects of insecure property rights over land on the functioning of the land rental market in the Dominican Republic. It shows that insecurity of property rights not only reduces the level of activity of the land rental market, but also causes market segmentation. A principal-agent framework is used to model the utility maximization of both the tenant and the landlord, where the landlord accounts for the risk of losing the land when it is not traded within a narrow local circle of confidence. Using data collected with a new methodology that enable the entire market to be characterized, we show that insecure property rights lead to matching in the tenancy markets along socio-economic group and hence severely limit access to land for the rural poor. Our results also show the importance of a minimum endowment of assets to obtain access to land in the rental market.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by University of California at Berkeley, Department of Agricultural and Resource Economics and Policy in its series CUDARE Working Paper Series with number 0992.

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Length: 23 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:are:cudare:0992

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Related research

Keywords: agricultural land; land rights; property rights; rents tenancy;

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References

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Citations

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Cited by:
  1. Janvry, Alain de & Sadoulet, Elisabeth, 2004. "Fitting the Facts and Capitalizing on New Opportunities to Redesign Rural Development Programs in Latin America," Brazilian Journal of Rural Economy and Sociology (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 42(3), September.
  2. Gine, Xavier, 2005. "Cultivate or rent out ? Land security in rural Thailand," Policy Research Working Paper Series 3734, The World Bank.
  3. Lee J. Alston & Bernardo Mueller, 2010. "Property Rights, Land Conflict and Tenancy in Brazil," NBER Working Papers 15771, National Bureau of Economic Research, Inc.
  4. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
  5. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 5(1), September.
  6. Conning, Jonathan H. & Robinson, James A., 2007. "Property rights and the political organization of agriculture," Journal of Development Economics, Elsevier, vol. 82(2), pages 416-447, March.
  7. Hurrelmann, Annette, 2008. "Analysing agricultural land markets as organisations: An empirical study in Poland," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 338-349, July.
  8. Vranken, Liesbet & Macours, Karen & Noev, Nivelin & Swinnen, Johan F.M., 2007. "Property Rights Imperfections, Asset Allocation, and Welfare: Co-Ownership in Bulgaria," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7795, European Association of Agricultural Economists.
  9. Castañeda Dower, Paul & Pfutze, Tobias, 2013. "Specificity of control: The case of Mexico's ejido reform," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 13-33.
  10. Bellemare, Marc F., 2010. "Insecure Land Rights and Share Tenancy in Madagascar," MPRA Paper 23640, University Library of Munich, Germany.
  11. Alain de Janvry & Elisabeth Sadoulet, 2007. "Toward a territorial approach to rural development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 66-98.

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