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Land acquisition for industrialization and compensation of displaced farmers

Ghatak, Maitreesh and Mookherjee, Dilip (2013) Land acquisition for industrialization and compensation of displaced farmers. Journal of Development Economics, 110 . pp. 303-312. ISSN 0304-3878

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Abstract

This paper addresses the question of how farmers displaced by acquisition of agricultural land for the purpose of industrialization ought to be compensated. Prior to acquisition, the farmers are leasing in land from a private owner or local government with a legally mandated sharecropping contract. Compensation rules affect the decision of the landlord to sell the land ex post to an industrial developer, and ex ante incentives of tenants and landlord to make specific investments in agricultural productivity. Efficiency considerations are shown to require farmers be over-compensated in the event of conversion.

Item Type: Article
Official URL: http://www.journals.elsevier.com/journal-of-develo...
Additional Information: © 2013 Elsevier B.V.
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor > HD100 Land Use
H Social Sciences > HD Industries. Land use. Labor > HD2329 Industrialization
K Law > K Law (General)
Sets: Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 27 Feb 2013 15:10
URL: http://eprints.lse.ac.uk/48859/

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