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Supervision and Transaction Costs: Evidence from Rice Farms in Bicol, the Philippines

Author

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  • Evenson, R.E.
  • Kimhi, A.
  • DeSilva, S.

Abstract

In this paper, we analyze supervision activities reported in a cross-section survey of rice farmers in the Bicol region of the Philippines. This survey is unique because it provides supervision data at the farm task level. We present a simple optimization model in which supervision intensity increases the productivity of hired workers, which is assumed to be lower than that of family members due to the transaction costs. The model predicts that supervision intensity will increase with transaction costs. We use different institutional conditions to proxy for transaction costs, and estimate the demand for supervision time for four different classes of rice production tasks. The estimation strategy controls for selectivity in both hiring and supervising. The results show a positive effect of transaction costs on supervision intensity.

Suggested Citation

  • Evenson, R.E. & Kimhi, A. & DeSilva, S., 2000. "Supervision and Transaction Costs: Evidence from Rice Farms in Bicol, the Philippines," Papers 814, Yale - Economic Growth Center.
    • Handle: RePEc:fth:yalegr:814
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    Cited by:

    1. Jamal, Erizal & Dewi, Yovita Anggita, 2009. "Technical Efficiency of Land Tenure Contracts in West Java Province, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 6(2), pages 1-13, December.
    2. Mamiit, Rusyan Jill & Yanagida, John & Villanueva, Donald, 2020. "Farm locations and dwelling clusters: Do they make production and technical efficiency spatially contagious?," Food Policy, Elsevier, vol. 92(C).
    3. Sanjaya DeSilva, 2011. "Access to Markets and Farm Efficiency: A Study of Rice Farms in the Bicol Region, Philippines," Economics Working Paper Archive wp_687, Levy Economics Institute.
    4. Fertő, Imre, 2002. "A mezőgazdasági termelés szerkezetének változásai a fejlett országokban, I. Miért a családi gazdaság a meghatározó üzemforma a fejlett országok mezőgazdaságában? [Changes in the structure of agricu," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 574-596.
    5. Ferto, Imre & Fogarasi, Jozsef, 2005. "The Choice of Farm Organisation. A Hungarian Case," 94th Seminar, April 9-10, 2005, Ashford, UK 24420, European Association of Agricultural Economists.
    6. James Roumasset, 2006. "The Economics of Agricultural Development: What Have We Learned? Processes," Working Papers 200604, University of Hawaii at Manoa, Department of Economics.
    7. Desilva, Sanjaya, 2000. "Skills, Partnership and Tenancy in Sri Lanka Rice Farms," Center Discussion Papers 28401, Yale University, Economic Growth Center.
    8. repec:sag:seajad:v:6:y:2009:i:2:p:21-34 is not listed on IDEAS
    9. Ibrahim Demir, 2016. "The firm size, farm size, and transaction costs: the case of hazelnut farms in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 81-90, January.

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    More about this item

    Keywords

    LABOUR MARKET ; COSTS ; SUPERVISORS;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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