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Dynamics of Phosphorus Fertilization and Liming Under Land Tenure Insecurity

Author

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  • Myyra, Sami
  • Pietola, Kyosti

Abstract

This article solves and characterizes optimal decision rules to invest in irreversible land improvements conditional on land tenure insecurity. Economic model is a normative dynamic programming model with known parameter for the one period returns and transition equations. The decision rules are solved numerically conditional on alternative scenarios on the likelihood that the lease contract and, thus, farmer access to land is either renewed or expires. The model parameters represent Finnish soil quality and production conditions. The results suggest that irreversible land improvements decrease quickly and the yields decline gradually when the farmer is confronted with land tenure insecurity caused by uncertain renewal of the lease contract.

Suggested Citation

  • Myyra, Sami & Pietola, Kyosti, 2005. "Dynamics of Phosphorus Fertilization and Liming Under Land Tenure Insecurity," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24633, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24633
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    File URL: http://purl.umn.edu/24633
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    References listed on IDEAS

    as
    1. Stein Holden & Hailu Yohannes, 2002. "Land Redistribution, Tenure Insecurity, and Intensity of Production: A Study of Farm Households in Southern Ethiopia," Land Economics, University of Wisconsin Press, vol. 78(4), pages 573-590.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    agriculture; dynamic programming; Land Economics/Use; Q15; Q21;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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