Credit and land contracting: A test of the theory of sharecropping

This article was published in The American Journal of Agricultural Economics [©2019 Published by Agricultural and Applied Economics Association] and the definite version is available at: https://doi.org/10.1093/ajae/aaz005 The Article's website is at: https://onlinelibrary.wiley.com/doi/full/10...

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Päätekijät:	Das, Narayan Chandra, Janvry, Alain de, Sadoulet, Elisabeth
Aineistotyyppi:	Journal Article
Kieli:	en_US
Julkaistu:	Wiley Online Library 2022
Aiheet:	Bangladesh Contracts Credit Fixed rent Rental Sharecropping
Linkit:	http://hdl.handle.net/10361/16283 https://doi.org/10.1093/ajae/aaz005

id	10361-16283
record_format	dspace
spelling	10361-162832022-03-27T05:22:08Z Credit and land contracting: A test of the theory of sharecropping Das, Narayan Chandra Janvry, Alain de Sadoulet, Elisabeth Bangladesh Contracts Credit Fixed rent Rental Sharecropping This article was published in The American Journal of Agricultural Economics [©2019 Published by Agricultural and Applied Economics Association] and the definite version is available at: https://doi.org/10.1093/ajae/aaz005 The Article's website is at: https://onlinelibrary.wiley.com/doi/full/10.1093/ajae/aaz005 Choice of a share vs. fixed rent land rental contract has figured prominently in the theory of industrial organization. This theory tells us that, while a share contract is inefficient in a first-best world, it may be the preferred option under second-best conditions. It has thus predicted the existence of sharecropping as the potentially preferred contract under conditions of liquidity constraint. Rigorous empirical evidence is, however, still lacking on this basic contribution of theory. We use a randomized experiment in a credit program for landless workers and marginal farmers organized by BRAC in Bangladesh to show that increased access to credit has a large positive effect on the choice of fixed rent over share rent contracts, both in terms of number of contracts and area contracted. As predicted by theory, the magnitude of this shift away from sharecropping is enhanced when the tenant is less exposed to risk. Development programs that facilitate access to credit to potential tenants can thus help them take more efficient land rental contracts. Published 2022-02-20T08:44:18Z 2022-02-20T08:44:18Z 2019 2019-03-26 Journal Article http://hdl.handle.net/10361/16283 https://doi.org/10.1093/ajae/aaz005 en_US https://onlinelibrary.wiley.com/doi/full/10.1093/ajae/aaz005 American Journal of Agricultural Economics Wiley Online Library
institution	Brac University
collection	Institutional Repository
language	en_US
topic	Bangladesh Contracts Credit Fixed rent Rental Sharecropping
spellingShingle	Bangladesh Contracts Credit Fixed rent Rental Sharecropping Das, Narayan Chandra Janvry, Alain de Sadoulet, Elisabeth Credit and land contracting: A test of the theory of sharecropping
description	This article was published in The American Journal of Agricultural Economics [©2019 Published by Agricultural and Applied Economics Association] and the definite version is available at: https://doi.org/10.1093/ajae/aaz005 The Article's website is at: https://onlinelibrary.wiley.com/doi/full/10.1093/ajae/aaz005
format	Journal Article
author	Das, Narayan Chandra Janvry, Alain de Sadoulet, Elisabeth
author_facet	Das, Narayan Chandra Janvry, Alain de Sadoulet, Elisabeth
author_sort	Das, Narayan Chandra
title	Credit and land contracting: A test of the theory of sharecropping
title_short	Credit and land contracting: A test of the theory of sharecropping
title_full	Credit and land contracting: A test of the theory of sharecropping
title_fullStr	Credit and land contracting: A test of the theory of sharecropping
title_full_unstemmed	Credit and land contracting: A test of the theory of sharecropping
title_sort	credit and land contracting: a test of the theory of sharecropping
publisher	Wiley Online Library
publishDate	2022
url	http://hdl.handle.net/10361/16283 https://doi.org/10.1093/ajae/aaz005
work_keys_str_mv	AT dasnarayanchandra creditandlandcontractingatestofthetheoryofsharecropping AT janvryalainde creditandlandcontractingatestofthetheoryofsharecropping AT sadouletelisabeth creditandlandcontractingatestofthetheoryofsharecropping
_version_	1814309430819291136

Credit and land contracting: A test of the theory of sharecropping

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