by Pranab Bardhan
All of the articles in this series can be found here.
Sometime before Ashok Rudra and I started on our large-scale data collection, I was already doing some theoretical and conceptual work on agrarian relations. My first, mainly theoretical, paper on share-cropping (jointly with TN) came out in American Economic Review in 1971. That paper was unsatisfactory and had quite a few loose strands, but it was one of the first papers to look theoretically into an economic-institutional arrangement of a developing country at the micro-level. This was a time when development economics was preoccupied with macro-issues like the structural transformation of the whole economy involving transition from agriculture to industrialization or problems of its aggregate interaction with more developed economies.
In a short trip abroad I presented my work on share-cropping in a seminar at Yale where my friend, Martin Weitzman who was teaching there, was present. He later told me that it made him start thinking of a more general context, that of sharing profits or revenues with workers in a modern firm that might resolve some macro-economic problems like unemployment—he later came out with a book on this titled The Share Economy.
Joe Stiglitz by that time had also moved to Yale, and asked me to stay overnight with him after my talk. That night at his home kitchen, as he was washing the dishes after our dinner, we kept on talking on various aspects of share-cropping. I told him that to me share-cropping was clearly an inefficient institution in agriculture, and yet it had been around for millennia in different parts of the world. We were both wondering why. Joe started looking at it from his point of view of imperfect information (the landlord unable to monitor how much effort the peasant put in). That led to his chain of thinking which ultimately produced his classic paper on share-cropping in 1974. Read more »