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” (co...
| Main Authors: | , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2001
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/156128 |
| _version_ | 1855516744964112384 |
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| author | Pender, John L. Fafchamps, Marcel |
| author_browse | Fafchamps, Marcel Pender, John L. |
| author_facet | Pender, John L. Fafchamps, Marcel |
| author_sort | Pender, John L. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | 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. |
| format | Artículo preliminar |
| id | CGSpace156128 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2001 |
| publishDateRange | 2001 |
| publishDateSort | 2001 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1561282025-11-06T05:22:39Z Land lease markets and agricultural efficiency: theory and evidence from Ethiopia Pender, John L. Fafchamps, Marcel land use agriculture economic aspects land management transaction costs inputs econometrics 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. 2001 2024-10-24T12:43:16Z 2024-10-24T12:43:16Z Working Paper https://hdl.handle.net/10568/156128 en Open Access application/pdf International Food Policy Research Institute Pender, John L.; Fafchamps, Marcel. 2001. Land lease markets and agricultural efficiency: theory and evidence from Ethiopia. EPTD Discussion Paper 81. https://hdl.handle.net/10568/156128 |
| spellingShingle | land use agriculture economic aspects land management transaction costs inputs econometrics Pender, John L. Fafchamps, Marcel Land lease markets and agricultural efficiency: theory and evidence from Ethiopia |
| title | Land lease markets and agricultural efficiency: theory and evidence from Ethiopia |
| title_full | Land lease markets and agricultural efficiency: theory and evidence from Ethiopia |
| title_fullStr | Land lease markets and agricultural efficiency: theory and evidence from Ethiopia |
| title_full_unstemmed | Land lease markets and agricultural efficiency: theory and evidence from Ethiopia |
| title_short | Land lease markets and agricultural efficiency: theory and evidence from Ethiopia |
| title_sort | land lease markets and agricultural efficiency theory and evidence from ethiopia |
| topic | land use agriculture economic aspects land management transaction costs inputs econometrics |
| url | https://hdl.handle.net/10568/156128 |
| work_keys_str_mv | AT penderjohnl landleasemarketsandagriculturalefficiencytheoryandevidencefromethiopia AT fafchampsmarcel landleasemarketsandagriculturalefficiencytheoryandevidencefromethiopia |