Australian Health & Human Capital Economics Seminar | Towns and Rural Land Inequality in India by Prashant Bharadwaj
Welcome back to the Virtual Australian Health & Human Capital Economics Seminar Series, which goes into its second year. This event is organised by A/Professor Victoria Baranov (UMelb), Dr Sarah Walker (UNSW), Professor Stefanie Schurer (USyd), Dr Rebecca McKibbin (USyd), Professor Adeline Delavande (UTS), and Professor Brenda Gannon (UQ).
The seminar series is open to the public. Sign up HERE for mailing list.
Towns and Rural Land Inequality in India
World Bank Development Research Group
Wednesday 14 December
10.00am – 11.00am
Abstract: Using the universe of land records from a large state in India, we document three empirical facts on rural land holding inequality at the village-level: 1) inequality is higher close to urban areas and decreases with distance, 2) this is due to fewer medium-sized farms (i.e. more small and large farms near urban areas), and 3) the distance to urban area-land holding inequality relationship depends on the size of the urban area – larger the urban area, greater the inequality close to such towns. A simple model where individual farmers face financial frictions, a U-shaped agriculture production function linking land size and farm productivity, and a significant urban opportunity cost of farm production, explains these patterns. While medium-sized farmers exit agriculture and large farmers consolidate, financial and land market frictions are key factors behind the preponderance of small farms even near towns.