Managerial Strategies of the Cotton South
AbstractRelative efficiencies of antebellum slave farms are suggested by many empirical studies. This paper considers a theoretical aspect of those results using a repeated principal-agent problem. Within its theoretical analysis, with relevance to profitability of slave farms, it will be shown that when inter-temporal punishments are necessary and when they can perform efficiently in production. Applying those theoretical results, some empirical studies on relative profitability and relative efficiencies are discussed. In the empirical study, relative efficiencies of each farm scale—free farms, task farms, and gang farms—are estimated region by region by a stochastic profit frontier model.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 181.
Date of creation: May 2005
Date of revision: Aug 2006
Relative efficiency of antebellum slave farms; repeated principal-agent problem; profit maximizing contracts; stick and carrot on plantations;
Find related papers by JEL classification:
- N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-12-04 (Agricultural Economics)
- NEP-ALL-2006-12-04 (All new papers)
- NEP-CSE-2006-12-04 (Economics of Strategic Management)
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