Tenancy and Soil Conservation in Market Equilibrium

Preprint OPEN
Lichtenberg, Erik (2001)
  • Subject: Land Economics/Use,

A theoretical analysis of equilibrium contracts between risk neutral landlords and tenants when tenants' soil exploitation is non-contractible indicates that landlords will overinvest in conservation structures. An empirical model using farm-level data provides evidence that investment in contractible soil conservation measures is greater on rental land.
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