CIRJE-F-322 | "Risk, Transaction Costs, and Geographic Distribution of Share Tenancy: A Case of Pre-War Japan" |
Author Name | Arimoto, Yutaka, Tetsuji Okazaki and Masaki Nakabayashi |
Date | March 2005 |
Full Paper | PDF file@ |
Remarks | @@Revised as CIRJE-CF-549 (2008). |
Abstract |
This paper investigates determinants of geographic distribution of share
tenancy and analyzes its efficiency implications in pre-war Iwate prefecture,
Japan. The distribution of share tenancy was attributable to risk
represented by yield variability, which in turn was affected by seasonal
winds called Yamase and topographic features. That risk raised transaction
costs of adopting a fixed-rent tenancy associated with the common
custom of rent reduction in Japan that mitigated the problem of risksharing.
Estimation results suggest that risk, wealth, and strength of
community ties were the main determinants of contract choice. |