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Determinants of Land Tenure Contracts; Theory and Evidence from Rural India

  • Ananish Chaudhuri

    ()

    (Rutgers University)

  • Pushkar Maitra

    ()

    (University of Southern California)

In this paper we analyze the factors that affect the choice of land tenure contracts in the semi arid tropics of India. We develop a dynamic principal-agent model with one-sided private information to explain the co-existence of wage, rent and share-cropping contracts. We generate empirically testable hypotheses about how multiple contracts can co-exist and we identify household and plot level characteristics that explain such co-existence. Using plot level data from three Indian villages we find that increasing the age of the head of the cultivating household and the value of the plot under cultivation increases the probability that the plot is under tenant cultivation (i.e. cultivated under a share or rent contract).

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Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 199710.

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Date of creation: 17 Jul 1997
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Handle: RePEc:rut:rutres:199710
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  12. Bhalla, Surjit S., 1988. "Does land quality matter? : Theory and measurement," Journal of Development Economics, Elsevier, vol. 29(1), pages 45-62, July.
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  16. Pushkar Maitra, 2001. "A quantitative analysis of employment guarantee programmes with an application to rural India," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(2), pages 211-228.
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  23. Mathewson, G Frank & Winter, Ralph A, 1985. "The Economics of Franchise Contracts," Journal of Law and Economics, University of Chicago Press, vol. 28(3), pages 503-26, October.
  24. Gangadharan, L., 1997. "Transactions Costs in Tradeable Emissions Markets: an Empirical Study of the Regional Clean Air Incentives MArket in Los Angeles," Department of Economics - Working Papers Series 591, The University of Melbourne.
  25. Ananish Chaudhuri, 1997. "A Dynamic Model of Contractual Choice in Tenancy," Departmental Working Papers 199711, Rutgers University, Department of Economics.
  26. Jong-Il Kim & Lawrence J. Lau, 1996. "The sources of Asian Pacific economic growth," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 448-54, April.
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  28. Hsiao, Cheng & Nugent, Jeffrey & Perrigne, Isabelle & Qiu, Jicheng, 1998. "Shares versus Residual Claimant Contracts: The Case of Chinese TVEs," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 317-337, June.
  29. Sugato Bhattacharyya & Francine Lafontaine, 1995. "Double-Sided Moral Hazard and the Nature of Share Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 761-781, Winter.
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