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Property Rights and the Political Organization of Agriculture

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Abstract

The modern theory of agrarian organization has studied how the economic environment determines organizational form under the assumption of stable property rights to land. The political economy literature has modelled the endogenous determination of property rights. In this paper we analyze a general equilibrium model in which the economic organization of agriculture and the political equilibrium determining the distribution of property rights are jointly determined. In particular, because the form of organization may affect the probability and distribution of benefits from agrarian reform, it may be determined in anticipation of this impact. Property rights may then be secured at the expense of economic efficiency. The model provides a framework for understanding why in some contexts the redistribution of land is chanelled primarily via land sale and tenancy markets but via politics and conflict in others. We test some implications of the theory using a five-decade panel that traces changes in the extent of tenancy over five decades across fifteen Indian states.

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  • Jonathan Conning & James A. Robinson, 2005. "Property Rights and the Political Organization of Agriculture," Economics Working Paper Archive at Hunter College 405, Hunter College Department of Economics.
  • Handle: RePEc:htr:hcecon:405
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    More about this item

    Keywords

    Agrarian Organization; Political Economy; Property Rights Reforms.;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • 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
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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