SHARE LEASING AND PRODUCTION EFFICIENCY

This report reviews the current economic literature 'on the relationship between type of land lease and agricultural resource allocation. Current economic theory of land leasing does not provide a completely satisfactory explanation of lease choice in U.S. agriculture primarily because of deficiencies in the treatment of bargaining and part-owner operators. In addition, results from the literature on the principal-agent problem and on implicit contracts have not been fully exploited in the landleasing literature