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Status and Incentives

  • Jon Reiersen
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    By exploring problems of risk, asymmetric information and missing markets, development microeconomics have made progress in explaining the underlying rationale and consequences of different contractual arrangements often observed in poor agrarian economies. But the recent theoretical literature has left little room for influences arising from cultural values and norms. By recognizing that individual behavior is socially embedded it is possible to reach a fuller understanding of agrarian organization in the Third World. This point is illustrated by using the land-lease market in Bangladesh as an example. By incorporating a quest for status into a model of sharecropping I seek to explain the well documented fact that landless farm-workers are almost excluded from the land lease market in Bangladesh.

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    File URL: http://www.nopecjournal.org/NOPEC_2004_a09.pdf
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    Article provided by Nordic Journal of Political Economy in its journal Nordic Journal of Political Economy.

    Volume (Year): 30 (2004)
    Issue (Month): ()
    Pages: 121-128

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    Handle: RePEc:noj:journl:v:30:y:2004:p:121-128
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    1. Herbert Gintis & Samuel Bowles & Melissa Osborne, 2001. "Incentive-Enhancing Preferences: Personality, Behavior, and Earnings," American Economic Review, American Economic Association, vol. 91(2), pages 155-158, May.
    2. Harold L. Cole & George J. Mailath & Andrew Postlewaite, . "Class Systems and the Enforcement of Social Norms," Penn CARESS Working Papers bdb2c3969ad56e98068513c7c, Penn Economics Department.
    3. Weiss, Yoram & Fershtman, Chaim, 1998. "Social status and economic performance:: A survey," European Economic Review, Elsevier, vol. 42(3-5), pages 801-820, May.
    4. Corneo, Giacomo & Jeanne, Olivier, 1999. "Social Organization in an Endogenous Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 711-25, August.
    5. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
    6. Singh, I., 1988. "Tenancy In South Asia," World Bank - Discussion Papers 32, World Bank.
    7. Hanming Fang, 2001. "Social Culture and Economic Performance," American Economic Review, American Economic Association, vol. 91(4), pages 924-937, September.
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