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Property Rights to Land and Agricultural Organization: An Argentina-United States Comparison

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  • Eric Edwards
  • Martin Fiszbein
  • Gary Libecap

Abstract

The contributions of Harold Demsetz offer key insights on how property rights and transaction costs shape economic organization. This guides our comparison of agricultural organization in two comparable regions, the Argentine Pampas and the US Midwest. In the US, land was distributed in small parcels and actively traded. In the Pampas, land was distributed in large plots and trade was limited because land was a social and political asset as well as commercial. We analyze why this led to persistently larger farms, specialization in ranching, and peculiar tenancy contracts in Argentina, relative to the US. Our empirical analysis, based on county-level data for both regions, shows that geo-climatic factors cannot explain the observed differences in agricultural organization. We discuss implications for long-term economic development in Argentina.

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  • Eric Edwards & Martin Fiszbein & Gary Libecap, 2022. "Property Rights to Land and Agricultural Organization: An Argentina-United States Comparison," CEH Discussion Papers 01, Centre for Economic History, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:hpaper:100
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    More about this item

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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