Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia
Rural households in the semiarid Northern Ethiopian highlands are net buyers of food. Crop failure due to erratic and unpredictable rainfall occurs frequently and leads to food shortages and income shocks. The renting out of land may be one of the coping responses of households exposed to shocks.We...
| Autores principales: | , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2011
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/41792 |
| _version_ | 1855535792059842560 |
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| author | Gebregziabher, Gebrehaweria Holden, S.T. |
| author_browse | Gebregziabher, Gebrehaweria Holden, S.T. |
| author_facet | Gebregziabher, Gebrehaweria Holden, S.T. |
| author_sort | Gebregziabher, Gebrehaweria |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Rural households in the semiarid Northern Ethiopian highlands are net buyers of food. Crop failure due to erratic and unpredictable rainfall occurs frequently and leads to food shortages and income shocks. The renting out of land may be one of the coping responses of households exposed to shocks.We developed a theoretical household model for poor landlord households capturing their contract choice response to downside production shocks. We tested econometrically whether contract choice may depend on poverty, capital constraints, production risk and random shocks. The multinomial logit model estimates show that poor households experiencing random shocks are more likely to choose fixed-rent contracts as a distress response to shocks, suggesting that fixed-rent contracts may be used to meet immediate needs, but at the expense of future incomes. We also found that fixed-rent contracts are preferred when ex ante production risk is low, while sharecropping is more likely where production risk is high. Finally, we found an indication that the choice of a fixed-rent contract as a coping response to shocks comes as a last resort after all other means of coping are exhausted. |
| format | Journal Article |
| id | CGSpace41792 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace417922025-06-17T08:24:05Z Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia Gebregziabher, Gebrehaweria Holden, S.T. food shortages households income models agricultural production sharecropping crop production shock risks rent Rural households in the semiarid Northern Ethiopian highlands are net buyers of food. Crop failure due to erratic and unpredictable rainfall occurs frequently and leads to food shortages and income shocks. The renting out of land may be one of the coping responses of households exposed to shocks.We developed a theoretical household model for poor landlord households capturing their contract choice response to downside production shocks. We tested econometrically whether contract choice may depend on poverty, capital constraints, production risk and random shocks. The multinomial logit model estimates show that poor households experiencing random shocks are more likely to choose fixed-rent contracts as a distress response to shocks, suggesting that fixed-rent contracts may be used to meet immediate needs, but at the expense of future incomes. We also found that fixed-rent contracts are preferred when ex ante production risk is low, while sharecropping is more likely where production risk is high. Finally, we found an indication that the choice of a fixed-rent contract as a coping response to shocks comes as a last resort after all other means of coping are exhausted. 2011-11 2014-07-25T11:40:44Z 2014-07-25T11:40:44Z Journal Article https://hdl.handle.net/10568/41792 en Limited Access Wiley Gebregziabher, Gebrehaweria; Holden, S. T. 2011. Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia. Agricultural Economics, 42(Supplement):675-690. doi: https://doi.org/10.1111/j.1574-0862.2011.00551.x |
| spellingShingle | food shortages households income models agricultural production sharecropping crop production shock risks rent Gebregziabher, Gebrehaweria Holden, S.T. Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia |
| title | Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia |
| title_full | Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia |
| title_fullStr | Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia |
| title_full_unstemmed | Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia |
| title_short | Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia |
| title_sort | distress rentals and the land rental market as a safety net contract choice evidence from tigray ethiopia |
| topic | food shortages households income models agricultural production sharecropping crop production shock risks rent |
| url | https://hdl.handle.net/10568/41792 |
| work_keys_str_mv | AT gebregziabhergebrehaweria distressrentalsandthelandrentalmarketasasafetynetcontractchoiceevidencefromtigrayethiopia AT holdenst distressrentalsandthelandrentalmarketasasafetynetcontractchoiceevidencefromtigrayethiopia |