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People fear the scenario where the pest eats the crop

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Unformatted text preview: ples: Tenancy: farms operated with rent paid to the land lord Sharecropping: revenue share with landlord Communal farming: practiced in Africa Collectivized agriculture: former soviet union These systems are almost always inefficient, i.e., they do not make the best use of inputs (owner- occupied farms are the best) Benchmark: efficient allocation of labor under private ownership: If you were to rent a piece of land: Instead of starting from 0 you start from below 0 (the rent paid) You work just about the same, it is efficient, but if you are poor, this is risky. In the scenario in which you lose everything AND having to pay someone for their land is tough Share- cropping is inefficient but popular The whole shape of this thing has changed, in fixed rent it is parallel shift downwards, but in sharecropping, the more I work the more I have to give up (taxation) It is entirely rational for a farmer who is working as a sharecropper to put less effort in, since But subsistence farming on small plots is common ll over the developing world There is lots of empirical evidence for the inefficiency of...
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