LAND LEASE MARKETS AND AGRICULTURAL EFFICIENCY: THEORY AND EVIDENCE FROM ETHIOPIA

John Pender () and Marcel Fafchamps

No 19796, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper develops a theoretical model of land leasing that includes transaction costs of enforcing labor effort, risk pooling motives and non-tradable capital 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. 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.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 27
Date: 2002
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Citations: View citations in EconPapers (1)

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https://ageconsearch.umn.edu/record/19796/files/sp02pe01.pdf (application/pdf)

Related works:
Working Paper: Land Lease Markets and Agricultural Efficiency: Theory and Evidence from Ethiopia (2004)
Working Paper: Land Lease Markets and Agricultural Efficiency: Theory and Evidence from Ethiopia (2002)
Working Paper: Land lease markets and agricultural efficiency: theory and evidence from Ethiopia (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19796

DOI: 10.22004/ag.econ.19796

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