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RESOURCE ALLOCATION AND EFFICIENCY OF SHARECROPPING UNDER UNCERTAINTY *
Author(s) -
Otsuka Keijiro,
Murakami Naoki
Publication year - 1987
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.1987.tb00038.x
Subject(s) - sharecropping , economics , yield (engineering) , resource allocation , microeconomics , land tenure , econometrics , agriculture , geography , market economy , materials science , archaeology , metallurgy
The paper examines how efficiency of sharecropping under uncertainty can be tested empirically. It demonstrates even under uncertainty, equality of factor ratios between sharecropped land and owner‐cultivated land supports the hypothesis that the terms of share contracts are effectively enforced by landlords, so as to achieve socially optimum resource allocation and risk sharing, unless the direct elasticities of substitution are identically equal to one. It also provides evidence, that the comparative yield tests conducted in different parts of South and Southeast Asia support the efficiency view of sharecropping.