Journal Article

Land Tenancy and Non-contractible Investment in Rural Pakistan

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collection.link.125
https://openknowledge.worldbank.org/handle/10986/4401
collection.name.125
C. Journal articles published externally
dc.contributor.author
Jacoby, Hanan G.
dc.contributor.author
Mansuri, Ghazala
dc.date.accessioned
2012-03-30T07:34:58Z
dc.date.available
2012-03-30T07:34:58Z
dc.date.issued
2008
dc.description.abstract
Commitment failure lies at the core of incomplete contract theory, yet its quantitative significance has rarely been assessed. Using detailed plot-level data from rural Pakistan, we find that non-contractible investment is underprovided on tenanted land, even after controlling for the endogeneity of leasing decisions. Our evidence also indicates that moral hazard in investment effort alone cannot explain this inefficiency. Instead, imperfect commitment appears to be the driving mechanism, since even plots taken on fixed rent contracts where all the rent is paid upfront receive lower investment than owner-cultivated plots. We further show that a considerable portion of the variation in tenancy duration, and hence in the security of tenure, is due to heterogeneity across landlords. One interpretation of this finding is that landlord reputation is important in mitigating hold-up.
en
dc.identifier.citation
Review of Economic Studies
dc.identifier.issn
00346527
dc.identifier.uri
http://hdl.handle.net/10986/5875
dc.language.iso
EN
dc.relation.uri
http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holder
World Bank
dc.subject
Economics of Contract: Theory D860
dc.subject
Land Ownership and Tenure
dc.subject
Land Reform
dc.subject
Land Use
dc.subject
Irrigation
dc.subject
Agriculture and Environment Q150
dc.subject
Housing Supply and Markets R310
dc.title
Land Tenancy and Non-contractible Investment in Rural Pakistan
en
dc.title.alternative
Review of Economic Studies
en
dc.type
Journal Article
en
okr.doctype
Journal Article
okr.externalcontent
External Content
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
958
okr.journal.nbpages
763-788
okr.language.supported
en
okr.peerreview
Academic Peer Review
okr.region.country
Pakistan
okr.relation.associatedurl
http://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=0987351&site=ehost-live
okr.relation.associatedurl
http://www.blackwellpublishing.com/journal.asp?ref=0034-6527
okr.volume
75

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