EconPapers    
Economics at your fingertips  
 

Moral Hazard: Experimental Evidence from Tenancy Contracts

Konrad B. Burchardi, Selim Gulesci, Benedetta Lerva and Munshi Sulaiman

No 12232, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We report results from a field experiment designed to estimate the effects of tenancy contracts on agricultural input choices, risk-taking, and output. The experiment induced variation in the terms of sharecropping contracts: some tenants paid 50% of output in compensation for land usage; others paid 25%; again others paid 50% of output and received cash, either fixed or stochastic. We find that tenants with higher output share utilized more inputs, cultivated riskier crops, and generated 60% more output relative to control. Cash transfers did not effect farm output. We interpret the increase in output as the incentive effect of sharecropping.

Keywords: Agricultural Productivity; Contracts; Incentive Effects; Sharecropping (search for similar items in EconPapers)
JEL-codes: C93 D22 O13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cta, nep-exp and nep-hrm
Date: 2017-08
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12232 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
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:cpr:ceprdp:12232

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12232

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-10-10
Handle: RePEc:cpr:ceprdp:12232