蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Misallocation in Indian Agriculture
蝌蚪网 Journal: Macroeconomics
(pp. 378–408)
Abstract
We exploit substantial variation in land-market institutions across Indian states and detailed household-level panel data to assess the effect of land-market distortions on agricultural productivity. We develop a model of heterogeneous farms and distorted land markets, featuring (i) state-level barriers to land-market participation and (ii) idiosyncratic (farm-level) distortions to farm size. We separately identify and estimate the two sources of land-market distortions in each state. We find substantial differences across states in rental barriers with large negative effects on agricultural productivity. Distortions associated with land-market participation contribute substantially to agricultural productivity differences across Indian states.Citation
Bolhuis, Marijn, Swapnika Rachapalli, and Diego Restuccia. 2026. "Misallocation in Indian Agriculture." 蝌蚪网 Journal: Macroeconomics 18 (2): 378–408. DOI: 10.1257/mac.20210358Additional Materials
JEL Classification
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q24 Renewable Resources and Conservation: Land