Skills, Partnerships and Tenancy in Sri Lankan Rice Farms



where Zi is a vector of all other characteristics of the farmer. Then, the notional demand for land (Y*i) in
the land leasing market is;


Yi * = C1 - Hi = f (Fl, X1, Z1 ) - H1


[38]


The difference between the actual and notional demands for land depends on the transaction costs in the

land leasing market. Suppose the actual net amount of land leased-in is Yi. Then


Y = h(Yi*) = h(f (Fi, Xi, Zi)- Hi)


[39]


where h(.) is the transformation function in the leasing market.


The Choice of Contract


The main hypothesis of this paper is that relatively skilled tenants obtain fixed-rent contracts while


those endowed with family labor get share contracts. The theoretical analysis showed that the level of


managerial skill required to enter in to a sharecropping contract is less than that for a fixed-rent contract


because the landlord typically provides some of the skill-intensive managerial inputs in sharecropped


farms. The empirical model presented in this section identifies some key differences between the two


contracts as resource adjustment mechanisms.


We focus on the leasing behavior of tenants because data constraints prevent us from estimating a


more general model that includes the landlords. The simplest method of estimating the determinants of


sharecropping and fixed rent leasing is to carry out separate leasing or contract choice estimates for each


type of contract. The starting point of our analysis is probit and tobit models for the following underlying


equations based on the model outlined in [37]-[39]:


Si = βo + β1 Fi+ β2 Hi + β3 Xι + β4 Zi+ V

Fi = δo + δ Fi + δ> Hi + δ3 χi + δ4 Zi + ψi


[40]


where εi and φi are distributed N (0, σε2) and N (0, σφ2) and Si* and Fi* are the underlying


variable for sharecropping and fixed-rent leasing, Fi, is the endowment of family labor, Hi is the amount of


20




More intriguing information

1. Studies on association of arbuscular mycorrhizal fungi with gluconacetobacter diazotrophicus and its effect on improvement of sorghum bicolor (L.)
2. Testing Panel Data Regression Models with Spatial Error Correlation
3. The Composition of Government Spending and the Real Exchange Rate
4. Economie de l’entrepreneur faits et théories (The economics of entrepreneur facts and theories)
5. A methodological approach in order to support decision-makers when defining Mobility and Transportation Politics
6. The name is absent
7. The name is absent
8. The name is absent
9. TOWARD CULTURAL ONCOLOGY: THE EVOLUTIONARY INFORMATION DYNAMICS OF CANCER
10. Experimental Evidence of Risk Aversion in Consumer Markets: The Case of Beef Tenderness
11. Target Acquisition in Multiscale Electronic Worlds
12. THE CHANGING STRUCTURE OF AGRICULTURE
13. ‘Goodwill is not enough’
14. The name is absent
15. Managing Human Resources in Higher Education: The Implications of a Diversifying Workforce
16. Ability grouping in the secondary school: attitudes of teachers of practically based subjects
17. Multifunctionality of Agriculture: An Inquiry Into the Complementarity Between Landscape Preservation and Food Security
18. L'organisation en réseau comme forme « indéterminée »
19. The name is absent
20. APPLICATIONS OF DUALITY THEORY TO AGRICULTURE