Monchuk, DanielDeininger, KlausNagarajan, Hari K.Singh, Sudhir K.2014-12-032014-12-032014-11https://hdl.handle.net/10986/20632Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice by looking at inherited paddy and wheat plots to show that these issues matter empirically. While crop choice can mitigate effects, fragmentation as measured by the Simpson index increases production cost and fosters substitution of labor for machinery, especially for small and medium farmers. Greater distances between fragments have a smaller effect. Creating opportunities for market-based consolidation could be one step to limit fragmentation-induced cost increases.en-USCC BY 3.0 IGOACCOUNTINGADVERSE EFFECTSADVERSE IMPACTSAGRICULTURAL BUSINESSAGRICULTURAL ECONOMICSAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTIVITYAGRICULTURAL SECTORAGRICULTURECENTRALLY PLANNED ECONOMIESCEREALSCHILD LABORCOST FUNCTIONSCREDIT MARKETSCROPCROP INCOMECROP PRODUCTIONCROPLANDCROPSCULTIVATIONDEVELOPMENT POLICYDIVERSIFICATIONECONOMETRICSECONOMIC ANALYSISECONOMIC HISTORYECONOMIC RESEARCHELASTICITYELASTICITY OF SUBSTITUTIONEMPLOYMENTEQUIPMENTEXTERNALITIESFACTOR DEMANDFACTOR MARKETSFAMILY LABORFARMFARM HOUSEHOLDSFARM SELF-EMPLOYMENTFARM SIZEFARM TECHNOLOGYFARMERSFARMINGFARMSFERTILIZERFERTILIZERSFRUITSHARVESTINGHIGH WAGESHOUSEHOLD INCOMEINCOMEINHERITANCEINSURANCEIRRIGATIONLABOR COSTSLABOR MARKETLAND ACQUISITIONLAND ASSETSLAND LEASINGLAND OWNERSHIPLAND PREPARATIONLAND PRODUCTIVITYLAND USE PLANNINGLANDHOLDINGSLIVESTOCKMAIZEMARGINAL FARMERSMARKET WAGESOILSEEDSORCHARDSOUTPUTSPADDYPER CAPITA INCOMEPEST CONTROLPESTICIDEPESTSPOPULATION GROWTHPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRODUCTION COSTPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTION INCREASESPULSESRESOURCE ALLOCATIONRETURNS TO SCALERICERURAL DEVELOPMENTRURAL HOUSEHOLDSRURAL POVERTYSEEDSEEDLINGSSEEDSSMALL FARMERSSMALL FARMSTOTAL COSTSTOTAL OUTPUTTUBERSVARIABLE INPUTSVEGETABLESVILLAGE LEVELWAGE RATESWHEAT10.1596/20632