Agriculture Reference
In-Depth Information
Table 5.6
Distribution of input-sharing rules within contracts
All inputs
q = 100%
0
1
2
3
4
5
6
7
8
0
1
7
5
21
11
24
9
49
209
1
1
0
0
1
3
3
11
186
2
0
1
0
1
1
5
144
3
0
0
0
12
162
q = s
4
0
1
0
21
231
5
0
3
18
220
6
0
10
158
7
4
71
8
24
Market vs. nonmarket inputs
Market inputs
Nonmarket inputs
q =
100%
q =
100%
0
1
2
3
4
0
1
2
3
4
0
16
47
17
59
233
0
9
19
30
77
723
1
2
5
6
262
1
2
6
26
372
q = s
2
1
8
153
q = s
2
10
12
233
3
11
498
3
5
82
4
310
4
22
Note: Total contracts = 1,628.
contracts (1%) have all four nonmarket shares equal to the cropshare. As table 5.6 shows,
the pattern is consistent even when cropshare is held constant.
Additional support for the model comes from comparing market and nonmarket sharing
rules while letting cropshare vary as shown in table 5.7. As noted in section 5.2, the model
suggests that the fraction of contracts for which input costs are shared in proportion to out-
put will increase as the farmer's share of the output decreases. Again, inspection of the tables
shows that the fraction of contracts where the number of inputs shared like output shares
(or borne fully by the farmer) falls as cropshare rises. To illustrate, track the row 4, column
0 entry for market inputs in table 5.7. For 50-50 contracts the percentage of all four input
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