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Marc F. Bellemare Posts

Do Land Titles Increase Agricultural Productivity?

Not everywhere:

This paper studies the relationship between land rights and agricultural productivity. Whereas previous studies used proxies for soil quality and instrumental variables to control for the endogeneity of land titles, the data used here include precise soil quality measurements, which in principle allow controlling for the unobserved heterogeneity between plots. Empirical results suggest that formal land rights (i.e., land titles) have no impact on productivity, but that informal land rights (i.e., landowners’ subjective perceptions of what they can and cannot do with their plots) have heterogeneous impacts on productivity.

That’s the abstract of my paper titled “The Productivity Impacts of Formal and Informal Land Rights: Evidence from Madagascar,” which has just been accepted for publication in Land Economics.

The paper is notable for a few things. First, it shows that land titles have no impact on agricultural productivity in Madagascar, a country where the US government had planned on spending $110 million dollars on various initiatives aimed at “assisting the rural population to transition from subsistence agriculture to a market economy,” including via land titling.

Media Appearance: CCTV-America Tonight between 9 and 10 PM

If you are interested in food prices — more specifically, in the impacts of the current drought on food prices — I will be on CCTV America, the American channel of Chinese Central Television (the main state television broadcaster in China), between 9 and 10 PM tonight.

I will be on a panel with Steven Bowen, a senior scientist at Aon Benfield Impact Forecasting. Going by the CCTV America website, it looks as though I will be on a program called Biz Asia America.

Ethanol and High Food Prices

It is not often that a stroke of a pen can quickly undo the ravages of nature, but federal regulators now have an opportunity to do just that. Americans’ food budgets will be hit hard by the ongoing Midwestern drought, the worst since 1956. Food bills will rise and many farmers will go bust.

An act of God, right? Well, the drought itself may be, but a human remedy for some of the fallout is at hand — if only the federal authorities would act. By suspending renewable-fuel standards that were unwise from the start, the Environmental Protection Agency could divert vast amounts of corn from inefficient ethanol production back into the food chain, where market forces and common sense dictate it should go.

From an excellent New York Times op-ed by Colin Carter, from the Department of Agricultural and Resource Economics at the UC Davis, and Henry Miller, a senior fellow at Stanford’s Hoover Institution.

Here is a telling series of numbers from the same op-ed: