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Land Reform and Productivity Gains with Multiple Market Imperfections

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Author Info
Pavel Ciaian

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Abstract

This paper uses a model with transaction costs and imperfect competition in the land market to analyze the efficiency and welfare effects of land reforms. We show that removing only one imperfection may have very different efficiency and welfare effects than would otherwise result from reforms that reduce both imperfections. In extreme cases, partial reforms can actually lead to welfare losses. The welfare effects are affected by the size of transaction costs, relative farm productivity and farm land demand elasticities. Partial reforms also have important income distribution effects.

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Publisher Info
Paper provided by Economics and Econometrics Research Institute (EERI) in its series EERI Research Paper Series with number EERI_RP_2007_01.

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Length: 54 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2007_01

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Related research
Keywords: Land market; transaction costs; imperfect competition; land reform; welfare effects;

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Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation

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    Other versions:
  5. Aronsson, Thomas & Blomquist, Soren, 2003. "Optimal taxation, global externalities and labor mobility," Journal of Public Economics, Elsevier, vol. 87(12), pages 2749-2764, December. [Downloadable!] (restricted)
    Other versions:
  6. Vranken, Liesbet & Swinnen, Johan, 2006. "Land rental markets in transition: Theory and evidence from Hungary," World Development, Elsevier, vol. 34(3), pages 481-500, March. [Downloadable!] (restricted)
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  10. Chris Milner, 1992. "Second-best Rates of Effective Protection with Imperfect Substitution," Journal of Economic Studies, Emerald Group Publishing, vol. 19(1), pages 3-13, January. [Downloadable!] (restricted)
  11. Scott Rozelle & Johan F. M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June. [Downloadable!] (restricted)
  12. Murphy, John A. & Furtan, W. Hartley & Schmitz, Andrew, 1993. "The gains from agricultural research under distorted trade," Journal of Public Economics, Elsevier, vol. 51(2), pages 161-172, June. [Downloadable!] (restricted)
  13. Pavel Ciaian & Johan F.M. Swinnen, 2006. "Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(4), pages 799-815, November. [Downloadable!] (restricted)
    Other versions:
  14. Emmanuel Skoufias, 1995. "Household Resources, Transaction Costs, and Adjustment through Land Tenancy," Land Economics, University of Wisconsin Press, vol. 71(1), pages 42-56. [Downloadable!] (restricted)
  15. Blackorby, C. & Davidson, R. & Schworm, W., 1990. "The Validity Of Piecemeal Second-Best Policy," UBC Departmental Archives 90-27, UBC Department of Economics.
    Other versions:
  16. Johan F. M. Swinnen, 1999. "The political economy of land reform choices in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 637-664, November. [Downloadable!] (restricted)
  17. Boadway, Robin & Harris, Richard, 1977. "A characterization of piecemeal second best policy," Journal of Public Economics, Elsevier, vol. 8(2), pages 169-190, October. [Downloadable!] (restricted)
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  18. Bloch, Peter C., 2002. "Agrarian Reform In Uzbekistan And Other Central Asian Countries," Working Papers 12789, University of Wisconsin-Madison, Land Tenure Center. [Downloadable!]
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