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Land Reform and Productivity Gains with Multiple Market Imperfections

  • Pavel Ciaian

This paper uses a model with transaction costs and imperfect competition in the land market to analyze the efficiency and welfare effects of land reforms. We show that removing only one imperfection may have very different efficiency and welfare effects than would otherwise result from reforms that reduce both imperfections. In extreme cases, partial reforms can actually lead to welfare losses. The welfare effects are affected by the size of transaction costs, relative farm productivity and farm land demand elasticities. Partial reforms also have important income distribution effects.

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File URL: http://www.eeri.eu/documents/wp/EERI_RP_2007_01.pdf
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Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2007_01.

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Length: 54 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2007_01
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  16. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
  17. Johan F. M. Swinnen, 1999. "The political economy of land reform choices in Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(3), pages 637-664, November.
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