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Tenurial obstacles to innovation
Authors:D M G Newbery
Institution:1. Lecturer in Economics , Cambridge University;2. Fellow of Churchill College
Abstract:Why do tenants fail to introduce new more profitable agricultural practices? After discussing various explanations of resistance to innovation the paper argues that as an economic explanation Bhaduri's theory 1973] is implausible. An alternative economic theory is developed. If the innovation increases the tenant's range of choice over inputs then it may prove impossible for the landlord to devise a mutually acceptable and enforceable contract which appropriates the benefits of the innovation, so that he will resist its introduction.
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