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Title:Land acquisition for industrialization and compensation of displaced farmers PDF Logo
Authors:Ghatak, Maitreesh
Mookherjee, Dilip
Issue Date:2011
Series/Report no.:Working paper // World Institute for Development Economics Research 2011,35
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 landlord, either a private owner or a local government. There are three sets of relevant incentive effects in the model: 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 quality of the land. Our main result is that under a broad class of circumstances, efficiency considerations require farmers be over-compensated for their loss of agricultural income in the event of conversion.
Subjects:land acquisition
compensation
exchange rights
incentives
industrialization
JEL:D23
O13
Q15
ISBN:978-92-9230-400-3
Document Type:Working Paper
Appears in Collections:WIDER Working Papers, United Nations University (UNU)

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