Evidence on the incentive optimality of share contracts
Autor(a) principal: | |
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Data de Publicação: | 2002 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/12450 |
Resumo: | Ever since Adam Smith, economists have argued that share contracts do not provide proper incentives. This paper uses tenancy data from India to assess the existence of missing incentives in this classical example of moral hazard. Sharecroppers are found to be less productive than owners, but as productive as fixed-rent tenants. Also, the productivity gap between owners and both types of tenants is driven by sample-selection issues. An endogenous selection rule matches tenancy contracts with less-skilled farmers and lower-quality lands. Due to complementarity, such a matching affects tenants’ input choices. Controlling for that, the contract form has no effect on the expected output. Next, I explicitly model farmer’s optimal decisions to test the existence of non-contractible inputs being misused. No evidence of missing incentives is found. |
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Braido, Luís Henrique BertolinoEscolas::EPGEFGV2014-11-17T12:38:01Z2014-11-17T12:38:01Z2002-02-21http://hdl.handle.net/10438/12450Ever since Adam Smith, economists have argued that share contracts do not provide proper incentives. This paper uses tenancy data from India to assess the existence of missing incentives in this classical example of moral hazard. Sharecroppers are found to be less productive than owners, but as productive as fixed-rent tenants. Also, the productivity gap between owners and both types of tenants is driven by sample-selection issues. An endogenous selection rule matches tenancy contracts with less-skilled farmers and lower-quality lands. Due to complementarity, such a matching affects tenants’ input choices. Controlling for that, the contract form has no effect on the expected output. Next, I explicitly model farmer’s optimal decisions to test the existence of non-contractible inputs being misused. No evidence of missing incentives is found.engEscola de Pós-Graduação em Economia da FGVSeminários de pesquisa econômica da EPGETodo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessAgency theoryMoral hazardTenancy dataSelection biasEconometric testEconomiaEconometriaEquilíbrio econômico - Modelos econométricosEvidence on the incentive optimality of share contractsinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL1075.pdf1075.pdfapplication/pdf418525https://repositorio.fgv.br/bitstreams/63319217-9de9-41ed-bfd6-af40dad86dfb/download7750cfc5cbd3f96f7d612c64f7ec590eMD51LICENSElicense.txtlicense.txttext/plain; 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dc.title.eng.fl_str_mv |
Evidence on the incentive optimality of share contracts |
title |
Evidence on the incentive optimality of share contracts |
spellingShingle |
Evidence on the incentive optimality of share contracts Braido, Luís Henrique Bertolino Agency theory Moral hazard Tenancy data Selection bias Econometric test Economia Econometria Equilíbrio econômico - Modelos econométricos |
title_short |
Evidence on the incentive optimality of share contracts |
title_full |
Evidence on the incentive optimality of share contracts |
title_fullStr |
Evidence on the incentive optimality of share contracts |
title_full_unstemmed |
Evidence on the incentive optimality of share contracts |
title_sort |
Evidence on the incentive optimality of share contracts |
author |
Braido, Luís Henrique Bertolino |
author_facet |
Braido, Luís Henrique Bertolino |
author_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Braido, Luís Henrique Bertolino |
dc.subject.eng.fl_str_mv |
Agency theory Moral hazard Tenancy data Selection bias Econometric test |
topic |
Agency theory Moral hazard Tenancy data Selection bias Econometric test Economia Econometria Equilíbrio econômico - Modelos econométricos |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Econometria Equilíbrio econômico - Modelos econométricos |
description |
Ever since Adam Smith, economists have argued that share contracts do not provide proper incentives. This paper uses tenancy data from India to assess the existence of missing incentives in this classical example of moral hazard. Sharecroppers are found to be less productive than owners, but as productive as fixed-rent tenants. Also, the productivity gap between owners and both types of tenants is driven by sample-selection issues. An endogenous selection rule matches tenancy contracts with less-skilled farmers and lower-quality lands. Due to complementarity, such a matching affects tenants’ input choices. Controlling for that, the contract form has no effect on the expected output. Next, I explicitly model farmer’s optimal decisions to test the existence of non-contractible inputs being misused. No evidence of missing incentives is found. |
publishDate |
2002 |
dc.date.issued.fl_str_mv |
2002-02-21 |
dc.date.accessioned.fl_str_mv |
2014-11-17T12:38:01Z |
dc.date.available.fl_str_mv |
2014-11-17T12:38:01Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
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article |
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publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/12450 |
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http://hdl.handle.net/10438/12450 |
dc.language.iso.fl_str_mv |
eng |
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eng |
dc.relation.ispartofseries.por.fl_str_mv |
Seminários de pesquisa econômica da EPGE |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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reponame:Repositório Institucional do FGV (FGV Repositório Digital) instname:Fundação Getulio Vargas (FGV) instacron:FGV |
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