Land Tenure, Incentives and the Choice of Techniques: Evidence from Nicaragua.

The choice of cultivation techniques is a key determinant of agricultural productivityand has important consequences for income growth and poverty reductionin developing countries. Using household data from Nicaragua this papershows that the choice of cultivation techniques depends on farmers’ tenurestatus even when techniques are observable and contractible. In particular Ifind that tree crops are less likely to be grown on rented, compared to ownercultivated,plots. Further evidence indicates that the result follows from thefact that landlords are unable or unwilling to commit to long term tenancycontracts rather than from agency costs due to risk aversion or limited liability.[...]