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Effects of Socio-Institutional and Emotional Factors on Japanese Farmland Rental Transactions

Published online by Cambridge University Press:  28 April 2015

Yoji Kunimitsu
Yoji Kunimitsu*
Affiliation:
Department of Rural Planning, National Institute for Rural Engineering, Tsukuba, Japan
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Abstract

Farmland reallocation between farmers through rental transactions is critical for improving Japanese rice productivity. This study examined effects of socio-institutional and emotional factors as well as economic factors on rental transactions. A stochastic choice model was applied to contingent valuation data by considering regional heteroscedasticity. Empirical results showed (1) existence of economic inefficiencies, 3% loss of economic surplus due to socio-institutional restriction, which is probably reflected in transaction costs; (2) a 15% reduction in surplus due to emotional reluctance of farmers; and (3) strong influences of rice price, wages, and geographical location on the rental rate and agreement level.

Keywords

contingent valuation questionnaireeconomic inefficiencyregional heteroscedasticityrental agreement levelrental ratestochastic choice modelC25D44Q12Q15Q38R58
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 1 , April 2006 , pp. 33 - 46
Copyright
Copyright © Southern Agricultural Economics Association 2006

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