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A DYNAMICAL ANALYSIS OF ALTERNATIVE FORMS OF AGRICULTURAL LAND TENURE
Author(s) -
Commendatore Pasquale,
Currie Martin
Publication year - 2006
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2006.00251.x
Subject(s) - sharecropping , economics , agriculture , land tenure , credit rationing , renting , microeconomics , agricultural economics , natural resource economics , macroeconomics , geography , political science , interest rate , law , archaeology
This paper explores a dynamic model of an agricultural sector in which farms are leased to cultivators on fixed rent contracts or on sharecropping contracts and in which cultivators are subject to credit rationing by banks. The model, which can exhibit complex dynamics, is used to compare the two pure forms of land tenure and to explore some implications of the coexistence of both types of tenure. The central conclusion from the dynamic simulations is that, contrary to the conventional proposition based on static analysis, both landowners and cultivators may be better‐off under sharecropping.