|This centre is a member of The LSE Research Laboratory [RLAB]: CASE | CVER | CEP | FMG | SERC | STICERD||Cookies?|
Paper No' DEDPS 34: | Full paper
Save Reference as: BibTeX File | EndNote Import File
Keywords: Agricultural productivity; asymmetric information; crop choice.
Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Development Economics
Share this page: Google Bookmarks | Facebook | Twitter
Abstract:Does the distribution of land rights affect the choice of contractible techniques? I present evidence suggesting that Nicaraguan farmers are more likely to grow effort-intensive crops on owned rather than on rented plots. I consider two theoretical arguments that illustrate why property rights might matter. In the first the farmer is subject to limited liability; in the second the owner cannot commit to output-contingent contracts. In both cases choices might be inefficient regardless of land distribution. The efficiency loss, however, is lower when the farmer owns the land. Further evidence suggests that, in this context, the inefficiency derives from lack of commitment.
Copyright © STICERD & LSE 2005 - 2015 | LSE, Houghton Street, London WC2A 2AE | Tel: +44(0)20 7955 6699 | Email: firstname.lastname@example.org | Site updated 27 May 2015