Effects of Socio-Institutional and Emotional Factors of Japanese Farmland Rental Transactions

Farmland reallocation between farmers through rental transactions is critical for improving Japanese rice productivity. This study examined effects of socio-institutional and emotional factors as well as economic factors on rental transactions. A stochastic choice model was applied to contingent valuation data by considering regional heteroscedasticity. Empirical results showed (1) existence of economic inefficiencies, 3% loss of economic surplus due to socio-institutional restriction, which is probably reflected in transaction costs; (2) a 15% reduction in surplus due to emotional reluctance of farmers; and (3) strong influences of rice price, wages, and geographical location on the rental rate and agreement level.


Issue Date:
2006-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/43747
Published in:
Journal of Agricultural and Applied Economics, Volume 38, Number 1
Page range:
33-46
Total Pages:
14
JEL Codes:
C25; D44; Q12; Q15; Q38; R58




 Record created 2017-04-01, last modified 2017-04-28

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