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Reforma Agrária, Eficiência e Mudança Institutional no Campo: análise teórica e de fronteira estocástica com dados em painel (1998-2006)
[Land Reform, Efficiency and Rural Institutional Change: theory and stochastic frontier analysis with panel data (1998-2006)]

Author

Listed:
  • Lambais, GBR
  • Silveira, JMFJ
  • Magalhães, MM

Abstract

This work deals with land reform in Brazil through an evolutionary and new institutional economics theoretical framework. Firstly, this theoretical underpinning delineates the existence of an intrinsic relation between asset equality and economic efficiency, going against the neoclassical trade-off. From this relation it is established that the utilization of society’s productive forces depends directly on institutional structures and propriety relations. In this sense, the way land reallocations are done, through different land redistribution policies, affects directly the level of agricultural product. The product is dependent on the level of allocative and technical efficiency society is submitted to. However, albeit static effects, society is susceptible to dynamic effects of institutional change. Insofar we develop analytical schematics where land reform is related to rural institutional change. From this schematics we derive the hypothesis that the market based land reform executed in Brazil, as a way to redistribute assets supposedly with a governance structure, system of incentives and complementary institutions to the factor markets, there is a gain in systemic productive efficiency at the microeconomic level. To test this hypothesis we develop a stochastic frontier econometric model with time-varying technical inefficiency effects and panel data. We analyze 106 projects of the Cédula da Terra Program in the states of Bahia, Maranhão, North of Minas Gerais, Pernambuco and Ceará, for the years 2000 and 2006. We conclude that this land reform has partial success in establishing productive organizations that evolve constantly their efficiency, wherein learning-by-doing is fundamental. Additionally, the governance effects are limited – the structure was not devised for institutional change – effects of transaction costs and conventions remain, causing market failure and persistence of inefficient forms of organization.

Suggested Citation

  • Lambais, GBR & Silveira, JMFJ & Magalhães, MM, 2010. "Reforma Agrária, Eficiência e Mudança Institutional no Campo: análise teórica e de fronteira estocástica com dados em painel (1998-2006)
    [Land Reform, Efficiency and Rural Institutional Change: the
    ," MPRA Paper 30741, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:30741
    as

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    File URL: https://mpra.ub.uni-muenchen.de/30741/1/MPRA_paper_30741.pdf
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    References listed on IDEAS

    as
    1. Geoffrey M. Hodgson, 2007. "Meanings of methodological individualism," Journal of Economic Methodology, Taylor & Francis Journals, vol. 14(2), pages 211-226.
    2. Finan, Frederico & Sadoulet, Elisabeth & de Janvry, Alain, 2005. "Measuring the poverty reduction potential of land in rural Mexico," Journal of Development Economics, Elsevier, vol. 77(1), pages 27-51, June.
    3. Masahiko Aoki, 2013. "Endogenizing institutions and institutional changes," Chapters,in: Comparative Institutional Analysis, chapter 16, pages 267-297 Edward Elgar Publishing.
    4. Klaus Deininger, 2003. "Land Policies for Growth and Poverty Reduction," World Bank Publications, The World Bank, number 15125, April.
    5. Kingston, Christopher & Caballero, Gonzalo, 2009. "Comparing theories of institutional change," Journal of Institutional Economics, Cambridge University Press, vol. 5(02), pages 151-180, August.
    6. Awudu Abdulai & Hendrik Tietje, 2007. "Estimating technical efficiency under unobserved heterogeneity with stochastic frontier models: application to northern German dairy farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(3), pages 393-416, September.
    7. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
    8. Lambais, Guilherme B. R., 2008. "Land Reform in Brazil: the arrival of the market model," MPRA Paper 25446, University Library of Munich, Germany.
    9. Samuel Bowles & Herbert Gintis, 2000. "Walrasian Economics in Retrospect," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1411-1439.
    10. Massimiliano Piacenza, 2006. "Regulatory Contracts and Cost Efficiency: Stochastic Frontier Evidence from the Italian Local Public Transport," Journal of Productivity Analysis, Springer, vol. 25(3), pages 257-277, June.
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    More about this item

    Keywords

    land reform; cédula da terra; brazil; stochastic frontier analysis; evolutionary; institutional economics;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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