IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22132.html
   My bibliography  Save this paper

An Asset-Risk Model Of Reverse Tenancy

Author

Listed:
  • Bellemare, Marc F.
  • Barrett, Christopher B.

Abstract

Reverse tenancy, wherein poorer landlords rent out land to richer tenants on shares, is a common phenomenon. Yet, it does not fit existing theoretical models of sharecropping and has never before been modeled in the development microeconomics literature. We explain reverse tenancy contracts using an asset risk model that incorporates moral hazard. When choosing the terms of an agrarian contract, the landlord considers the impact of her choice on the probability that she will retain future rights to the rented land. Thus, this model captures the effect of tenure insecurity and property rights on agrarian contracts. The main testable implication of the theoretical model is that, as property rights become more secure, reverse tenancy tends to disappear.

Suggested Citation

  • Bellemare, Marc F. & Barrett, Christopher B., 2003. "An Asset-Risk Model Of Reverse Tenancy," 2003 Annual meeting, July 27-30, Montreal, Canada 22132, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22132
    DOI: 10.22004/ag.econ.22132
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22132/files/sp03be02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22132?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jean‐Philippe Platteau, 1996. "The Evolutionary Theory of Land Rights as Applied to Sub‐Saharan Africa: A Critical Assessment," Development and Change, International Institute of Social Studies, vol. 27(1), pages 29-86, January.
    2. James A. Roumasset, 2002. "The Microeconomics of Agricultural Development in the Philippines," Working Papers 200210, University of Hawaii at Manoa, Department of Economics.
    3. David M. G. Newbery, 1977. "Risk Sharing, Sharecropping and Uncertain Labour Markets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(3), pages 585-594.
    4. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    5. Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1992. "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1965-2018, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Holden, Stein T. & Bezabih, Mintewab, 2006. "Tenure Insecurity, Transaction Costs in the Land Lease Market and their Implications for Gendered Productivity Differentials," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25273, International Association of Agricultural Economists.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bellemare, Marc F. & Barrett, Christopher B., 2003. "An Asset Risk Theory of Share Tenancy," Working Papers 127203, Cornell University, Department of Applied Economics and Management.
    2. Thomas Vendryes, 2014. "Peasants Against Private Property Rights: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 971-995, December.
    3. Otsuka, Keijiro & Suyanto, S. & Sonobe, Tetsushi & Tomich, Thomas P., 2001. "Evolution of land tenure institutions and development of agroforestry: evidence from customary land areas of Sumatra," Agricultural Economics, Blackwell, vol. 25(1), pages 85-101, June.
    4. Gwendoline Promsopha, 2018. "Risk†Coping, Land Tenure And Land Markets: An Overview Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 176-193, February.
    5. Benin, Samuel & Place, Frank & Nkonya, Ephraim M. & Pender, John L., 2006. "Land Markets and Agricultural Land Use Efficiency and Sustainability: Evidence from East Africa," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25645, International Association of Agricultural Economists.
    6. Daniel Ayalew Ali & Stefan Dercon & Madhur Gautam, 2011. "Property rights in a very poor country: tenure insecurity and investment in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(1), pages 75-86, January.
    7. Bouquet, Emmanuelle, 2009. "State-Led Land Reform and Local Institutional Change: Land Titles, Land Markets and Tenure Security in Mexican Communities," World Development, Elsevier, vol. 37(8), pages 1390-1399, August.
    8. Ali, Daniel Ayalew & Deininger, Klaus & Goldstein, Markus, 2014. "Environmental and gender impacts of land tenure regularization in Africa: Pilot evidence from Rwanda," Journal of Development Economics, Elsevier, vol. 110(C), pages 262-275.
    9. Smith, Robert E., 2004. "Land Tenure, Fixed Investment, and Farm Productivity: Evidence from Zambia's Southern Province," World Development, Elsevier, vol. 32(10), pages 1641-1661, October.
    10. Klaus Deininger & Daniel Ayalew Ali & Takashi Yamano, 2008. "Legal Knowledge and Economic Development: The Case of Land Rights in Uganda," Land Economics, University of Wisconsin Press, vol. 84(4), pages 593-619.
    11. Quisumbing, Agnes R. & Payongayong, Ellen & Aidoo, J. B. & Otsuka, Keijiro, 1999. "Women's land rights in the transition to individualized ownership," FCND discussion papers 58, International Food Policy Research Institute (IFPRI).
    12. Nakajima, Shinsaku, 2010. "Tenancy Contract Choice and Land Improvement Investment for Upland Farming," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 12, pages 1-19.
    13. Anthony Harris & Anthony D'Agostino & Sara Litke-Farzaneh & Beryl Seiler & Matt Sloan, "undated". "Morocco Land Productivity Project: Evaluation Design Report," Mathematica Policy Research Reports f3fc788501b64608b17e1cb23, Mathematica Policy Research.
    14. Holden, Stein T. & Otsuka, Keijiro, 2014. "The roles of land tenure reforms and land markets in the context of population growth and land use intensification in Africa," Food Policy, Elsevier, vol. 48(C), pages 88-97.
    15. Deininger, Klaus & Jin, Songqing, 2006. "Tenure security and land-related investment: Evidence from Ethiopia," European Economic Review, Elsevier, vol. 50(5), pages 1245-1277, July.
    16. Olmos, Marta Fernandez & Rosell-Martinez, Jorge & Espitia-Escuer, Manuel Antonio, 2008. "The yield/quality trade-off and contractual choice," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6065, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Asaaga, Festus A. & Hirons, Mark A. & Malhi, Yadvinder, 2020. "Questioning the link between tenure security and sustainable land management in cocoa landscapes in Ghana," World Development, Elsevier, vol. 130(C).
    18. Lucie Letrouit & Harris Selod, 2024. "Informal land markets and ethnic kinship in West African cities [Marchés fonciers informels et cousinage ethnique dans les villes d'Afrique de l'Ouest]," Post-Print hal-04525074, HAL.
    19. Sylvie Lambert & Martin Ravallion & Dominique van de Walle, 2011. "Is It What You Inherited Or What You Learnt?: Intergenerational linkage and interpersonal inequality in Senegal," WIDER Working Paper Series wp-2011-062, World Institute for Development Economic Research (UNU-WIDER).
    20. Petracco, Carly K. & Pender, John L., 2009. "Evaluating the Impact of Land Tenure and Titling on Access to Credit in Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 51899, International Association of Agricultural Economists.

    More about this item

    Keywords

    Risk and Uncertainty;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea03:22132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.