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Tenure Insecurity, Transaction Costs in the Land Lease Market and their Implications for Gendered Productivity Differentials

Author

Listed:
  • Holden, Stein T.
  • Bezabih, Mintewab

Abstract

This study sets out to assess the link between land leasing behavior and productivity differentials between male and female-headed households. A double-moral hazard model allows us to show that landlord's tenure insecurity leads to sub-optimal level of effort on tenant's part, via its impact on the likelihood of contract renewal. The landlord's enforcement ability is also shown to increase the optimal level of effort. The empirical findings support the hypothesis that female heads of households have higher tenant turnover and lower enforcement ability. The results, however, show that contract renewal is not strongly linked to productivity.

Suggested Citation

  • Holden, Stein T. & Bezabih, Mintewab, 2006. "Tenure Insecurity, Transaction Costs in the Land Lease Market and their Implications for Gendered Productivity Differentials," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25273, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25273
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    File URL: http://purl.umn.edu/25273
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    References listed on IDEAS

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    1. Stein Holden & Bekele Shiferaw & John Pender, 2001. "Market Imperfections and Land Productivity in the Ethiopian Highlands," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(3), pages 53-70.
    2. Dhawan, Rajeev, 2001. "Firm size and productivity differential: theory and evidence from a panel of US firms," Journal of Economic Behavior & Organization, Elsevier, vol. 44(3), pages 269-293, March.
    3. Bell, Clive & Zusman, Pinhas, 1976. "A Bargaining Theoretic Approach to Cropsharing Contracts," American Economic Review, American Economic Association, vol. 66(4), pages 578-588, September.
    4. Laffont, Jean-Jacques & Tirole, Jean, 1988. "The Dynamics of Incentive Contracts," Econometrica, Econometric Society, vol. 56(5), pages 1153-1175, September.
    5. Russell Cooper & Thomas W. Ross, 1985. "Product Warranties and Double Moral Hazard," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 103-113, Spring.
    6. Jacoby, Hanan G. & Mansuri, Ghazala, 2006. "Incomplete contracts and investment : a study of land tenancy in Pakistan," Policy Research Working Paper Series 3826, The World Bank.
    7. Eswaran, Mukesh & Kotwal, Ashok, 1985. "A Theory of Contractual Structure in Agriculture," American Economic Review, American Economic Association, vol. 75(3), pages 352-367, June.
    8. Bellemare, Marc F. & Barrett, Christopher B., 2003. "An Asset-Risk Model Of Reverse Tenancy," 2003 Annual meeting, July 27-30, Montreal, Canada 22132, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Klaus Deininger & Daniel Ayalew Ali & Tekie Alemu, 2008. "Assessing the Functioning of Land Rental Markets in Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 67-100, October.
    2. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 5(1), September.
    3. Holden, Stein T. & Deininger, Klaus & Ghebru, Hosaena, 2007. "Impact of Land Certification on Land Rental Market Participation in Tigray Region, Northern Ethiopia," MPRA Paper 5211, University Library of Munich, Germany.
    4. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    5. Meinzen-Dick, Ruth Suseela & van Koppen, Barbara & Behrman, Julia & Karelina, Zhenya & Akamandisa, Vincent & Hope, Lesley & Wielgosz, Ben, 2012. "Putting Gender on the Map: Methods for mapping gendered farm management systems in Sub-Saharan Africa," IFPRI discussion papers 1153, International Food Policy Research Institute (IFPRI).
    6. Ma, Xianlei & Heerink, Nico & van Ierlan, Ekko & Lang, Hairu & Shi, Xiaoping, 2015. "Impact of Tenure Security and Trust on Land Rental Market Development in Rural China," 2015 Conference, August 9-14, 2015, Milan, Italy 212219, International Association of Agricultural Economists.
    7. Meinzen-Dick, R., 2010. "Engendering agricultural research," IWMI Working Papers H043604, International Water Management Institute.
      • Meinzen-Dick, Ruth & Quisumbing, Agnes & Behrman, Julia & Biermayr-Jenzano, Patricia & Wilde, Vicki & Noordeloos, Marco & Ragasa, Catherine & Beintema, Nienke, 2010. "Engendering agricultural research," IFPRI discussion papers 973, International Food Policy Research Institute (IFPRI).
    8. Qushim, Berdikul & Gillespie, Jeffrey, 2016. "Women Farm Operators in the U.S. Meat Goat Production: Who is More Productive?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230004, Southern Agricultural Economics Association.
    9. Peterman, Amber & Quisumbing, Agnes & Behrman, Julia & Nkonya, Ephraim, 2010. "Understanding gender differences in agricultural productivity in Uganda and Nigeria," IFPRI discussion papers 1003, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    productivity; female headed households; contract length; enforcement ability; Land Economics/Use; D2; Q12; Q15; C21; C7;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • 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; Agriculture and Environment
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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