Differences in resource allocation under alternative tenurial contracts and its explanations: evidence from rural West Bengal, India.

Abstract

In the light of the debate on the differences in resource allocation under alternative tenurial contracts, an attempt has been made in the paper to measure the level of allocative efficiency across alternative tenurial contracts in West Bengal agriculture by using Data Envelopment Analysis. Empirical evidences suggest a close association between efficiency in resource allocation and land tenure contracts in the sense that owner cultivation and fixed rent tenancies are used to allocate resources more efficiently in comparison to sharecropping and cost sharecropping tenancy. The difference in allocative efficiency under alternative contractual choices is also observed to be attributable to the differences in cropping pattern and irrigation intensity under alternative contractual arrangements.