According to proposition 1, land (rental) markets would transfer land to more productive producers with lower endowments (proposition one) leading us to expect 1,> 0 and 2 < 0. While a positive sign on the element of 4 corresponding to agricultural assets would point towards imperfections in markets for these assets. Based on proposition three, we expect households whose past experience in off-farm labor markets reflects greater opportunities for such employment to be less likely to rent in and more likely to rent out and the level of rental market activity in general to increase with development of the off-farm economy in a community as measured by the share of income derived from non-agricultural sources, therefore, we expect 5 to be negative and the coefficient on the share of village income from agriculture to be positive.
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