Land lease markets and agricultural efficiency: theory and evidence from Ethiopia
This paper develops a theoretical model of land leasing that includes transaction costs of enforcing labor effort, risk pooling motives and non-tradable productive inputs. We test the implications of this model compared to those of the “Marshallian” (unenforceable labor effort) and “New School” (costlessly enforceable effort) perspectives using data collected from four villages in Ethiopia. We find that land lease markets operate relatively efficiently in the villages studied, supporting the New School perspective relative to the other two models. Land contract choice is found to depend upon the social relationships between landlords and tenants, but differences in contracts are not associated with significant differences in input use or output value per hectare. We find that other household and village characteristics do affect input use and output value, suggesting imperfections in other factor markets. These results imply that interventions to improve the functioning of land lease markets are likely to be of little benefit for agricultural efficiency in the villages studied, whereas improvements in other factor markets may be more beneficial.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: 2033 K Street, NW, Washington, DC 20006|
Web page: http://www.ifpri.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-58, March.
- Gavian, Sarah & Ehui, Simeon, 1999. "Measuring the production efficiency of alternative land tenure contracts in a mixed crop-livestock system in Ethiopia," Agricultural Economics, Blackwell, vol. 20(1), pages 37-49, January.
- Hausman, Jerry, 2015.
"Specification tests in econometrics,"
Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
- 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.
- Arcand, Jean-Louis & Ai, Chunrong & Ethier, Francois, 2007.
"Moral hazard and Marshallian inefficiency: Evidence from Tunisia,"
Journal of Development Economics,
Elsevier, vol. 83(2), pages 411-445, July.
- Al, C. & Arcand, J.L. & Ethier, F., 1996. "Moral Hazard and Marshallian Inefficiency: Evidence from Tunisia," Cahiers de recherche 9605, Universite de Montreal, Departement de sciences economiques.
- Al, C. & Arcand, J.L. & Ethier, F., 1996. "Moral Hazard and Marshallian Inefficiency: Evidence from Tunisia," Cahiers de recherche 9605, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Jean-Louis ARCAND & AI & ETHIER, 2005. "Moral Hazard and Marshallian Inefficiency:Evidence from Tunisia," Working Papers 200534, CERDI.
- Pender, John L. & Fafchamps, Marcel, 2001.
"Land lease markets and agricultural efficiency: theory and evidence from Ethiopia,"
EPTD discussion papers
81, International Food Policy Research Institute (IFPRI).
- Pender, John L. & Fafchamps, Marcel, 2002. "Land Lease Markets And Agricultural Efficiency: Theory And Evidence From Ethiopia," 2002 Annual meeting, July 28-31, Long Beach, CA 19796, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- John Pender & Marcel Fafchamps, 2002. "Land Lease Markets and Agricultural Efficiency: Theory and Evidence from Ethiopia," CSAE Working Paper Series 2002-19, Centre for the Study of African Economies, University of Oxford.
- John Pender & Marcel Fafchamps, 2004. "Land Lease Markets and Agricultural Efficiency: Theory and Evidence from Ethiopia," Development and Comp Systems 0409021, EconWPA.
- Marcel Fafchamps & John Pender, 2000. "Land Lease Markets and Agricultural Efficiency: Theory and Evidence from Ethiopia," Economics Series Working Papers WPS/2002-19, University of Oxford, Department of Economics.
- Sadoulet, Elisabeth & Fukui, Seiichi & Janvry, Alan de, 1994. "Efficient share tenancy contracts under risk: The case of two rice-growing villages in Thailand," Journal of Development Economics, Elsevier, vol. 45(2), pages 225-243, December.
- 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.
- Jean-Jacques Laffont & Mohamed Salah Matoussi, 1995.
"Moral Hazard, Financial Constraints and Sharecropping in El Oulja,"
Review of Economic Studies,
Oxford University Press, vol. 62(3), pages 381-399.
- Laffont, Jean-Jacques & Matoussi, Mohamed Salah., 1988. "Moral Hazard, Financial Constraints and Sharecropping in El Oulja," Working Papers 667, California Institute of Technology, Division of the Humanities and Social Sciences.
- Otsuka, Keijiro & Hayami, Yujiro, 1988. "Theories of Share Tenancy: A Critical Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 31-68, October.
- Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October.
- Gavian, Sarah & Ehui, Simeon K., 1999. "Measuring the production efficiency of alternative land tenure contracts in a mixed crop-livestock system in Ethiopia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 20(1), January.
- D. Gale Johnson, 1950. "Resource Allocation under Share Contracts," Journal of Political Economy, University of Chicago Press, vol. 58, pages 111.
- Nottenburg, Carol & Pardey, Philip G. & Wright, Brian D., 2001. "Accessing other people's technology: do non-profit agencies need it? how to obtain it?," EPTD discussion papers 79, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:fpr:eptddp:81. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.