A Finance Approach To Understanding Patterns Of Land Tenure

Abstract

Economists and economic historians have generally understood different forms of land tenure as arrangements for the supply of labor. This paper suggests a different interpretation -- that land-tenure arrangements be understood rather as arrangements for the supply of financing. The cost and availability of financing depend on the arrangements available to ensure the providers of the financing a fair return on their investment. The paper argues that the different forms of land tenure may best be understood in the context of such arrangements -- as alternative ways of providing the family farm with the external financing that it requires. The discussion focuses on land-tenure arrangements in pre-industrial Europe, but the conclusions hold quite generally.