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Non-agricultural land use and land reform: theory and evidence from Brazil

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  • Juliano Junqueira Assunção

    ()
    (Department of Economics PUC-Rio)

Abstract

This paper examines the effect of nonagricultural land use on agrarian organization and land reform, providing a simple model to determine its policy implications and some evidence on its importance. It is argued that, if land-rental market is imperfect, there is a role for redistributive land policies and the following implications hold: (i) land reform is more probable to enhance efficiency in a low-wage economy; (ii) such policies should aim small farmers instead of landless people, obtaining land from large landholders. Empirical evidence suggests this is a relevant issue in Brazil, specially during periods of high macroeconomic instability.

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File URL: http://www.econ.puc-rio.br/pdf/td496.pdf
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Bibliographic Info

Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 496.

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Length: 21p. JEL Code: O13, Q15, Q24
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:rio:texdis:496

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Related research

Keywords: land reform; land use; agricultural development;

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References

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  1. William Hallagan, 1978. "Self-Selection by Contractual Choice and the Theory of Sharecropping," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 344-354, Autumn.
  2. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Falk, Barry L., 1991. "Formally Testing the Present Value Model of Farmland Prices," Staff General Research Papers 11093, Iowa State University, Department of Economics.
  4. Laffont, Jean-Jacques & Matoussi, Mohamed Salah, 1995. "Moral Hazard, Financial Constraints and Sharecropping in El Oulja," Review of Economic Studies, Wiley Blackwell, vol. 62(3), pages 381-99, July.
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  6. Horowitz, Andrew W, 1993. "Time Paths of Land Reform: A Theoretical Model of Reform Dynamics," American Economic Review, American Economic Association, vol. 83(4), pages 1003-10, September.
  7. Moene, Karl Ove, 1992. "Poverty and Landownership," American Economic Review, American Economic Association, vol. 82(1), pages 52-64, March.
  8. Campbell, John Y & Shiller, Robert J, 1987. "Cointegration and Tests of Present Value Models," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 1062-88, October.
  9. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
  10. Assuncao, Juliano J. & Ghatak, Maitreesh, 2003. "Can unobserved heterogeneity in farmer ability explain the inverse relationship between farm size and productivity," Economics Letters, Elsevier, vol. 80(2), pages 189-194, August.
  11. Franklin Allen, 1982. "On Share Contracts and Screening," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 541-547, Autumn.
  12. Stiglitz, Joseph E, 1974. "Incentives and Risk Sharing in Sharecropping," Review of Economic Studies, Wiley Blackwell, vol. 41(2), pages 219-55, April.
  13. Binswanger, Hans P. & Deininger, Klaus, 1997. "Explaining agricultural and agrarian policies in developing countries," Policy Research Working Paper Series 1765, The World Bank.
  14. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
  15. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  16. Deininger, Klaus & Feder, Gershon, 1998. "Land institutions and land markets," Policy Research Working Paper Series 2014, The World Bank.
  17. Eswaran, Mukesh & Kotwal, Ashok, 1985. "A Theory of Contractual Structure in Agriculture," American Economic Review, American Economic Association, vol. 75(3), pages 352-67, June.
  18. Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1992. "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1965-2018, December.
  19. Grossman, Herschel I, 1994. "Production, Appropriation, and Land Reform," American Economic Review, American Economic Association, vol. 84(3), pages 705-12, June.
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