| This study assessed the preference for and efficiency of land tenure contract arrangements in rice farming in West Java, Indonesia. Specifically, it examined the transaction costs associated with land tenure contracts, the land tenure contract preference, the efficiency of land tenure contracts, and the policy agenda to address the problems of land tenure efficiency. Three types of land tenure contracts were considered: sharecropping, fixed rental and mortgage. Farm plot data were used to econometrically investigate whether transaction cost had an effect on the choice of land tenure contracts and on the efficiency of land tenure contracts. The transaction cost coefficient of 0.097 (significant of 1% level) in the choice of land tenure indicates that as... |
