Lease Market Research Articles

Revisiting the tenancy-inefficiency question with an inter-temporal optimisation framework: insights from the agrarian set-up of Assam Plains in Eastern India

Traditionally the tenancy-inefficiency debate is centred on the incentive problem of sharecroppers that induce them to under-supply inputs and effort in cultivation. The fixed-rent tenants are supposed to be free from this problem as the rents they pay are in the nature of fixed costs and hence do not enter marginal calculations. The present paper argues that even the fixed-rent tenants can have an incentive problem, albeit of the opposite type, if an inter-temporal optimisation framework is adopted. They may be inclined to use production-enhancing inputs like chemical fertilisers excessively so as to maximise returns from the land during their tenure, disregarding the implication of their action for long-term soil health. For empirical verification of the argument, the authors analyse survey data from Assam Plains, where land holders of all size class actively participate in the land lease market. While the sharecroppers have been expectedly found to use land less intensively than the owner operators, the fixed-rent tenants are seen using land much more intensively which can impair soil health in the longer run. Suitable reforms of the prevailing agrarian institutions have been called for to address the incentive problems of both sharecroppers and fixed-rent tenants.

The Rural Land Market in Early Modern Inland Flanders and Brabant: A Long Run Perspective

Abstract:The emergence of factor markets during the transition from the Middle Ages to the early modern period was of crucial importance for long-term economic development. Despite Flanders and Brabant being situated in one of the most densely urbanised regions within Europe at the time, the current historiographical debate lacks a quantitative analysis of the market for land in the late medieval and early modern Low Countries. This article focuses on the transmission of rural property in the southern Low Countries from the 1400s up until the end of the eighteenth century. Using time-series data on the rural land market for a selection of case studies within Inland Flanders and Brabant has enabled me to present a long-run analysis of the changes in the market value of land, the market activity and the overall nature of the rural peasant land market. My findings show a tendency towards fewer but larger holdings being transferred on the land market. The path-dependent nature of this process had a significant impact upon the changing proto-capitalistic nature of agriculture within the southern Low Countries. As per capita market activity declined and the average transfer size increased, the farmers’ dependency on the lease market grew effectively speeding up the pauperisation processes in Inland Flanders.

Why the Uncertain Term Occurs in the Farmland Lease Market: Evidence from Rural China

Urbanization and aging of the agricultural population lead to the insufficient supply of agricultural labor and land being idle in rural China, calling for the farmland lease market to maintain sustainable and efficient use of farmland. However, rural households tend to agree on an uncertain term for farmland leasing in/out, which leads to low efficiency and land loss in agriculture. Therefore, using the survey data collected from 2704 rural households and a logistic regression model, we examine the effects of risk faced by the rural households on the likelihood of the uncertain term for farmland leasing. Results reveal that a large share of labor with low education and high income increase the likelihood of an uncertain term for farmland leasing out activities, while a high disaster frequency, a high education of household and a high share of agricultural income increase the probability of an uncertain term for farmland leasing in activities. Additionally, leasing farmland to/from relatives or neighbors, informal contracts, low rent and the lack of pension insurance also increase the likelihood of the uncertain term for farmland leasing out/in activities. Findings suggest that more attention should be paid to education, agricultural insurance and social security system in rural areas.

리스거래의 다양화 및 그 법적 특색에 관한 고찰 : 미국과 일본 리스시장의 비교를 중심으로

본고에서는 미국의 리스거래 행태를 최신 동향도 감안하여 확인하고, 리스거래의 현대적 역할과 그 파이낸스 툴로서의 유용성에 대해서 정리한다. 리스거래 대상이 되는 물건(리스(lease) 물건)에 관해서는 원래 외국에서는 물건의 종별로 특별한 제한이 있는 것은 아니다. 현재 주류가 되고 있는 설비 등의 부동산 외에 부동산과 무형재산(예를 들면 소프트웨어의 사용권 등)에 대해서도 일반적으로 리스(lease) 물건의 대상으로 인식되고 있다. 이러한 사정을 바탕으로 본고에서는 부동산을 대상으로 하는 리스에 대해서도 널리 다루기로 한다.BR 미국의 최근 설비리스에서의 임대인(lessor)의 특징으로서 은행계의 리스업체가 많다는 것을 든다. 신규 조성의 절반 이상은 이러한 은행계의 리스회사의 대처에 의한 것이라고 생각된다. 리스거래를 단서로 각종 은행 서비스의 제공을 목표로 하는 은행의 고객기반 확대의 경영정책과 일치하는 것이 주된 요인이다. 은행에서는 리스거래 경험자나 리스회사 인수를 통해서 설비리스의 섹터에 참가하는 신규거래의 획득 방향으로 움직이고 있지만, 한편으로 은행규제(최근에는 쉐도우 뱅킹의 논란의 영향도 있다고 생각된다.)에서 오는 제한도 있다.BR 이러한 제한 없는 독립의 리스(lease)회사나 제조업 계열의 금융 자회사에서도 리스사업이 계속 성장하는 기회를 찾고 있다. 은행이 설비 리스(lease) 관련 금융에 대한 참가를 적극화하는 배경에는 최근 경기침체로 가계주택 담보대출과 카드대출 사업은 약해진 상태에 있는 것으로부터 이유를 찾을 수 있으며, 수익성장 기회를 찾아 리스거래 등 비교우위인 비즈니스라인에 참가하고 싶다는 동기가 있을 것으로 생각된다.BR 이 참가는 또한 은행의 포트폴리오의 분산에 기여하고 있다. 이러한 설비업계 파이낸스를 적극화하는 것은 일반 사업법인 등의 기존 고객의 자금수요에 유연하게 대응하는 고객기반 확보에 도움을 줄 것으로 보인다. 은행에서는 이러한 비즈니스 라인의 구축을 리스회사의 인수 및 전략적 제휴(독립 리스회사가 제휴은행의 고객에 리스거래를 제공한다.) 등을 통해서 행하고 있다.

An Empirical Analysis of Hunting Lease Pricing and Value of Game in Sweden

Game species generate considerable benefits to society in terms of hunting values, tourism, and maintenance of ecosystem balance. This paper seeks to estimate hunting values for multiple hunted species by disentangling the role of wildlife harvesting opportunities from other factors that affect hunting lease prices. We examine the determinants of hunting lease prices in Sweden using both spatial and nonspatial econometric techniques. Our analysis confirms considerable hunting values for fallow deer and wild boar. Also, the study reveals the presence of spatial spillovers in lease prices, implying that landowners have little scope for exerting monopoly power on the hunting lease market.

Impact of Surplus Labor Existence on Land Lease Market in Rural Central Java

Objective - The Indonesian rice sector seems to lose global competitiveness, and the government intervenes in the market to achieve food self-sufficiency. Particularly, in the main rice producing areas of Central Java, the rice sector does not have a comparative and competitive advantage due to small farm size. Then, we need to investigate the reasons why the farm sizes of rice producers are still small. Methodology/Technique - We hypothesize that the existence of surplus labor in rural areas restrains farm size enlargement. Therefore, we need to examine the existence of surplus labor in study area. By using the empirical model of the Cobb Douglas production function, we test the hypothesis of surplus labor. The estimation result shows that there is a surplus of labor in the study area. Findings - In addition, we examine the impact of surplus labor on land lease market in rural area. This study proves empirically that there is surplus labor in rural areas; therefore, farmers have difficulty finding job opportunities in sectors other than farming. In such a case, they prefer to cultivate rather than lease their land. Novelty - This result implies that the existence of surplus labor restricts the number of land lease contract. As a result, the land lease supply in the land lease market has become very limited. Thus, the existence of surplus labor in rural areas would be a constraint of farm size enlargement. This is the first study which explores the relationship between surplus labor and land lease market in the main rice producer area in Central Java. Type of Paper: Empirical Keywords: Impact; Existence; Surplus Labour; Land Lease Market; Farm Size Enlargement. JEL Classification: E24, H83.

AP Land Licensed Cultivators Act in Retrospect and Prospect

The Licensed Cultivators Act, 2011 of the composite state of Andhra Pradesh (AP) breaks a new ground in that it seeks to issue loan eligibility cards (LECs) to tenants and thereby entitle them to gain access to bank credit, crop insurance, input subsidies and disaster relief. Noting that the Act presently bestows benefits on only a limited number of tenants—because the landlords, threatened by the provisions of the tenancy acts of the state, thwart the attempts of the revenue authorities in the issue of LECs—the article suggests that the incorporation of the liberal provisions of the Model Agricultural Land Leasing Act, 2016, formulated by the Expert Committee on Land Leasing, into the statutes of AP would serve the desired purpose eminently. It also argues that the rationale behind the Model Act, 2016 is sound, and that it can for sure prop up equity and efficiency in the land lease market in the contemporary setting.

Recreational Leasing of Alaska Commercial Halibut Quota: The First Two Years of the Guided Angler Fish Provision

The Pacific Halibut Catch Sharing Plan creates a process for allocating halibut between the Alaska commercial and recreational charter sectors. A provision intended to allow for “flexibility” creates an inter-sectoral trading market, permitting charter operators to lease commercial halibut pounds to relax client harvest restrictions. Here we evaluate the first two years of lease market activity and participation. We find the program may provide beneficial flexibility to some commercial quota holders, with the number of transfers to the charter sector being greater than transfers within the commercial sector for some types of commercial quota. We also identify a high proportion of self-leasers. However, transfers to the charter sector are on average smaller than within-sector commercial transfers, and total poundage leased by the charter sector is low compared to commercial transfers. Finally, the value-per-pound may be higher in the charter sector, as commercial-to-charter transfer prices approach the commercial ex-vessel price.

The Value Relevance Of Straight-Lining Lease Expenses

The International Accounting Standards Board envisions the global acceptance of International Financial Reporting Standards (IFRS). Despite attempting convergence with IFRS, some national accounting standard setters, such as in India allow for certain carve-outs in their own accounting standards so as to meet country-specific requirements for fair presentation. Indian Accounting Standards allow for operating leases with fixed inflationary linked escalations to be accounted for on an as-incurred basis in contrast to the existing requirement in IFRS to straight-line such leases. This study explores whether operating lease expenses with fixed inflationary linked escalations and accounted for on a straight-line basis provide incremental value relevance beyond the as-incurred basis.This study exploits an occurrence in South Africa, where listed companies that previously accounted for operating leases with fixed inflationary-linked escalation clauses on an as-incurred basis, were required to straight-line those leases. Using the Ohlson (1995) valuation model this empirical study investigates the incremental value relevance of the straight-line basis over the as-incurred basis.Results show a significant change in the association between property-related operating lease expenses and market value indicators after the effect of straight-lining is introduced. This suggests that the straight-line basis provide investors with more value relevant information than when accounting for the expense as-incurred.Findings from this study prompt national accounting setters that allow for operating leases with fixed inflationary linked escalations to be accounted for on an as-incurred basis to consider first whether the straight-line basis do not provide more relevant information. Limiting the choice of accounting treatment may enhance comparability of financial statements.

“Shop-lease Contract with Sar-qofli” in the Post-Iranian Revolution Era: Deletion of “Haqq-e kasb o pisheh o tejārat” from the Law of Lessor–Lessee Relationships

In contemporary Iran, many shops are under the “shop-lease contract with sar-qofli.” In this contract, sar-qofli, a strong usufructuary right supported by intangible assets such as the shop's reputation, is given to the tenant. The “shop-lease contract with sar-qofli” originated from a traditional merchants' custom in Iran's business quarters. After the 1979 Revolution, the Law of Lessor–Lessee Relationships, which provides a legal framework for the practice of “shop-lease contract with sar-qofli,” was completely revised, since Islamic jurists regarded haqq-e kasb o pisheh o tejārat as problematic. Haqq-e kasb o pisheh o tejārat, the legal designation of sar-qofli, was based on a heterogeneous value concept introduced into the Iranian legal system from abroad during World War II. As a result of this revision, another alternative for asset management was granted to shop owners. Nevertheless, “shop-lease contract with sar-qofli” remains the most widely employed form of lease in Iran's property lease market.

Industrialized watersheds have elevated risk and limited opportunities to mitigate risk through water trading

Businesses are increasingly concerned about water scarcity and its financial impacts, as well as competing needs of other stakeholders and ecosystems. Industrialized watersheds may be at more serious risk from water scarcity than previously understood because industrial and municipal users have inelastic demand and a high value for water. Previous water risk assessments have failed to sufficiently capture these economic aspects of water risk. We illustrate how hydro-economic modeling can be used to improve water risk assessments at a basin scale and we apply the methodology to the industrialized Brazos River Basin (85% municipal and industrial withdrawals) and consider implications for The Dow Chemical Company׳s Freeport Operations in Texas, US. Brazos water right holders pay only operating and maintenance costs for water during normal periods; however, when shortages occur, leasing stored water or reducing production may be the only mitigation option in the short-run. Modeling of water shortages and the theoretical cost of leasing water under nine combined scenarios of demand growth and climate change suggests that water lease prices to industry could increase by 9–13X. At best, a more developed water rights and storage lease market could result in lower lease prices (2–3X); however, given that transactions would be limited it is more likely that prices would still increase by 4–13X. These results suggest that markets are unlikely to be a robust solution for the Brazos because, in contrast to other watersheds in the Western US, there is little reliable water to trade from low value users (agricultural) to high value users (industry and municipalities). Looking at demand trends across the contiguous US as an indicator of water risk, 2% of watersheds have municipal and industrial demands that outstrip total surface and ground water supplies and in these watersheds industry has historically paid higher lease prices for water. This study provides new ways for businesses to characterize water risk and forecast water prices that uncovers hidden water risk and highlights the positive but diminished mitigating effects of water markets in a highly industrialized basin.

International Real Estate Review

Since its liberalization in 2003, the urban land lease market in China has experienced substantial growth in terms of both the volume and value of transactions. At the same time, significant transaction premiums are observed in these land transactions; these premiums make the general public skeptical about the emergence of a property market bubble that stems from aggressive bidding in the land market. In this paper, we seek to rationalize this phenomenon by means of the event study method. By using a land transaction dataset from Beijing for the period 2003 to 2013, we find that the capital market reacts significantly to land bidding events. In addition, the land transaction premium observed in the Chinese land market can be explained by the signaling effect, in that developers tend to use the bidding price as a signaling device to disseminate favorable private information to the marketplace.

Changes in the lease and permanent sale quota markets of a rock lobster fishery in response to stock abundance

AbstractEffective individual transferable quotas (ITQ) systems rebuild stocks and allow transfer of quotas to more efficient operators. This process requires functional markets for both quota sales and temporary quota leases. These markets are expected to respond to changes in economic rent from the fishery, which is influenced by stock abundance and the international rock lobster price. This research used multistate Markov modelling and Granger causality test to examine changes in the permanent and temporary quota trade in the Tasmanian rock lobster fishery quota market, during periods of both increasing and decreasing stock abundance. The permanent quota trade market was more active during the period of stock growth, while the quota lease market was active in both periods of stock growth and decline. In contrast to theoretical trends in ITQ fisheries, trades in both markets were not linked to the technical efficiency (i.e. catching capability) of operators, but were more driven by the quota owners' financial capacity (i.e. number of owned quotas). Prolonged and unexpected stock decline affected the quota market so that it deviated from the theoretical pattern of ITQ fisheries. Operators previously active in the market reduced their activity, while smaller operators and firms that previously had not traded became more active, so the fleet expanded with smaller operators entering.

The Price Impact of Deposit in Residential Lease Contracts: The Collapse of Chonsei System in Korea

We analyze the effects of a lump sum deposit of a lease contract on residential property returns. According to our pricing model, property returns increase with the deposit to price ratio when interest rate is larger than dwelling benefits. When interest rate becomes lower than the dwelling benefits, on the contrary, property returns decrease as the deposit to price ratio increases because dwelling benefits exceed interest revenues earned from the deposit. Therefore, a lower interest rate makes landlords prefer residing in the properties to renting out them, causing a decrease in supply in the housing lease market. These results indicate that when low interest rate continues, the deposit based lease system such as antichresis lease would disappear. Our empirical results using “Chonsei”, a popular lease contract without monthly rental payment in Korea, support this view. The positive relationship between property returns and Chonsei-to-Price ratio is no longer significant after the financial crisis in 2007, and the recent decrease in interest rate is the main contributor that reduces the effect of Chonsei-to-Price ratio on property returns.

Technological change and its impact on tenancy relation in West Bengal

An attempt has been made to examine the changes in tenurial contracts in consequential to the changes in agricultural production technology in Cooch Behar district of West Bengal where a dramatic change in agricultural production scenario has been witnessed over last one and half decade. The study has been made with the help of primary data collected by suitably designed schedule and questionnaire. A trend of surrendering land by the bargadars in exchange of getting ownership for a part of land thereof and thereby possibility of increasing earning as owner operator after getting ownership in foreseeable future has been elicited as a prime factor for the long sustenance of lease cultivation. From the entire analysis it comes out that with the advancement of technology, the bargaining position of the landowners vis-a-vis tenants in land lease market has been gradually favorable to the landowners and the security of tenure ensuring of getting ownership for a part of leased-in land and thereby possibility of increasing income by the tenants seems to be a compromising settlement between tenants and landowners.

Social Network Analysis of Price Dispersion in Fishing Quota Lease Markets

ABSTRACT We present a novel technique for analyzing price dispersion in non-centralized quota lease markets where pairwise negotiations determine price and price information from past transactions is not generally available. The technique does not require fishing cost or ex-vessel price data and employs social network analysis metrics (namely degree centrality and constraint) to measure access to information and network position for buyers and sellers. Our method is applied to the Gulf of Mexico red snapper quota lease market and finds that certain quota lease traders with larger information-sharing networks or stronger network positions have greater negotiating power. Also, average quota lease prices varied by region even though there are no geographic trading restrictions. Results indicate social networks are correlated with price dispersion and inefficiencies in the trading markets that can undermine the success of catch share programs that seek to improve fishery profits and reduce overcapacity. JEL C...

Fishing for revenue: how leasing quota can be hazardous to your health

Abstract Fisheries management decisions have the potential to influence the safety of fishers by affecting how and when they fish. This implies a responsibility of government agencies to consider how fishers may behave under different policies and regulations in order to reduce the incidence of undesirable operational health and safety outcomes. In the Tasmanian southern rock lobster fishery, Australia, the expansion of the quota lease market under individual transferable quota (ITQ) management coincided with a rise in the number of commercial fishing fatalities, with five between 2008 and 2012. A discrete choice model of daily participation was fitted to compare whether physical risk tolerance varied between fishers who owned the majority of their quota units (quota owners) and those who mainly leased (lease quota fishers). In general, fishers were averse to physical risk (wave height), however this was offset by increases in expected revenue. Lease quota fishers were more responsive to changes in expected revenue than quota owners, which contributed to risk tolerance levels that were significantly higher than those of quota owners in some areas. This pattern in behaviour appeared to be related to the cost of leasing quota. Although ITQs have often been considered to reduce the incentive for fishers to operate in hazardous weather conditions, this assumes fishing by quota owners. This analysis indicated that this doesn't hold true for lease quota fishers in an ITQ system, where in some instances there remains an economic incentive to fish in conditions with high levels of physical risk.

서울시의 임대차시장의 구조변화 및 균형에 대한 연구 : 전세가격상승과 월세이율변화를 중심으로

The upswing of housing Jeonse prices has recently long lasted in the Jeonse market of Korea, and the lease market structure has switched rapidly from the Jeonse structure to the monthly-rent one. In general, Jeonse is the institution that low-income brackets or common people use, and so the excessive rise of the Jeonse price may have an adverse effect on the residential stability of common people. And the structural change of the housing lease market from Jeonse to monthly rent is an indispensable tendency but the monthly rent comes to reduce the disposable income of the tenant and derogate from the upward mobility of housing in a long-term period. Accordingly, the problem is that the structural change of the housing lease market has switched to the monthly rent structure with great rapidity. This study attempted to make a comparative analysis of the characteristic of the housing Jeonse and monthly rent markets in Seoul and that of other localities under this change of the market under consideration and analyze the balance between the housing Jeonse market and the monthly rent market. As a result, it was found that unlike localities, the rise of Jeonse prices in Seoul did not induce the sale price to rise any longer. And it was found that the rise of Jeonse prices would be inevitable for some time in the future for the balance between Jeonse and monthly rent markets to be achieved.

Strategies for Lease Volume Enhancement: Study of the Nigeria Lease Market 2001-2011

The Nigeria lease market given the relatively poor per capita income, but willingness among the high economicpopulation to spend and the growth in the oil gas industry as well as road transportation compared to otherAfrican nations ought to record higher volume of lease transactions. Contrary to expectations, the lease volumehas remained low. It is in doubt if the total lease volume recorded in Nigeria would have generated enough profitto sustain the number of firms that are actively involved in sales-(marketing) of lease services; if these firmswere solely involved in lease businesses. The relatively low volume of lease transactions suggests that themarket capacities are grossly under utilized. This is evidenced as the work compared the situation in Nigeriawith South Africa based on survey research method; with special interest on the marketing principles, strategiesand policies for lease service marketing. Results show that the Nigeria lease marketing activities experienceinefficiency sequel to poor control of administrative and legal costs, low level of customer services among others.Hence lease sales volume is low. Thus strategies for lease volume enhancement as recommendations arediscussed to include: creation of competitive advantage, specialization in lease marketing, customer servicesflexibility, enhanced funding ability among others.

Trading water to improve environmental flow outcomes

As consumptive extractions and water scarcity pressures brought about by climate change increase in many world river basins, so do the risks to water‐dependent ecological assets. In response, public or not for profit environmental water holders (EWHs) have been established in many areas and bestowed with endowments of water and mandates to manage water for ecological outcomes. Water scarcity has also increasingly spawned water trade arrangements in many river basins, and in many instances, EWHs are now operating in water markets. A number of EWHs, especially in Australia, begin with an endowment of permanent water entitlements purchased from irrigators. Such water entitlements typically have relatively constant interannual supply profiles that often do not match ecological water demand involving flood pulses and periods of drying. This article develops a hydrologic‐economic simulation model of the Murrumbidgee catchment within the Murray‐Darling Basin to assess the scope of possibilities to improve environmental outcomes through EWH trading on an annual water lease market. We find that there are some modest opportunities for EWHs to improve environmental outcomes through water trade. The best opportunities occur in periods of drought and for ecological outcomes that benefit from moderately large floods. We also assess the extent to which EWH trading in annual water leases may create pecuniary externalities via bidding up or down the water lease prices faced by irrigators. Environmental water trading is found to have relatively small impacts on water market price outcomes. Overall our results suggest that the benefits of developing EWH trading may well justify the costs.