Equity and Productivity Issues in Modern Agrarian Reform Legislation

Understanding of the economic implications of land tenure systems rests on a dual foundation. First, there is a set of historical generalizations about the consequences of alternative tenure arrangements for economic growth. There is also a set of logical deductions about the effect of alternative tenure arrangements on resource allocation and output levels derived from the neo-classical theory of the firm. Among Western economists, economic history and economic logic have combined to produce a remarkable unity in doctrine to the effect that an agricultural sector organized on an owner-operator pattern (a) achieves a more efficient allocation of resources and (b) makes a greater contribution to national economic growth than under alternative systems.