Land Lease Markets and Agricultural Efficiency in Ethiopia

Posted: 29 Feb 2008

See all articles by John Pender

John Pender

CGIAR

Marcel Fafchamps

Stanford University - Freeman Spogli Institute for International Studies

Date Written: June 2006

Abstract

This paper develops a theoretical model of land leasing that includes transaction costs of enforcing labour effort, risk pooling motives and non-tradable capital inputs. We test the implications of this model compared to those of the "Marshallian" (unenforceable labour effort) and "New School" (costlessly enforceable effort) perspectives using data collected from four villages in Ethiopia. We find that land lease markets operate relatively efficiently in the villages studied, supporting the New School perspective. We find that other household and village characteristics do affect input use and output value, suggesting imperfections in other factor markets.

Suggested Citation

Pender, John and Fafchamps, Marcel, Land Lease Markets and Agricultural Efficiency in Ethiopia (June 2006). Journal of African Economies, Vol. 15, No. 2, pp. 251-284, June 2006, Available at SSRN: https://ssrn.com/abstract=915478 or http://dx.doi.org/10.1093/jae/eji024

John Pender (Contact Author)

CGIAR

Washington, DC
United States

Marcel Fafchamps

Stanford University - Freeman Spogli Institute for International Studies ( email )

Stanford, CA 94305
United States

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