EconPapers    
Economics at your fingertips  
 

The Effects of Land Markets on Resource Allocation and Agricultural Productivity

Chaoran Chen, Diego Restuccia and Raul Santaeulalia-Llopis ()

No 1011, Working Papers from Barcelona School of Economics

Abstract: We assess the effects of land markets on misallocation and productivity both empirically and quantitatively. Exploiting variation from a land certification reform across time and space in Ethiopia, we find that certification facilitates rentals and improves agricultural productivity. We calibrate a quantitative macroeconomic model with heterogeneous household farms facing institutional costs to land markets using the micro panel data. The effect of a counterfactual reallocation from no rentals to efficient rentals increases zone-level agricultural productivity by 43 percent on average. While our estimated institutional costs are strongly associated with land certification across zones, there are nontrivial residual frictions to rental market activity, implying that land certification only partially captures the overall effects of rentals. A full certification reform accounts for just one-fourth of the overall productivity gains from land rentals. This result highlights the importance of comprehensive reforms alleviating frictions to land transactions beyond the granting of certificates.

Keywords: land; markets; rentals; misallocation; productivity; Inequality; panel data (search for similar items in EconPapers)
JEL-codes: E02 O10 O11 O13 O43 O55 Q15 Q18 Q24 (search for similar items in EconPapers)
Date: 2017-12
New Economics Papers: this item is included in nep-agr, nep-dev and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
https://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/1011_0.pdf (application/pdf)

Related works:
Journal Article: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2022) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2021) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2020) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2020) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2019) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2018) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2017) Downloads
Working Paper: The Effects of Land Markets on Resource Allocation and Agricultural Productivity (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:1011

Access Statistics for this paper

More papers in Working Papers from Barcelona School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().

 
Page updated 2024-11-05
Handle: RePEc:bge:wpaper:1011