The puzzle of sharecropping: A survey of theories

The geographically pervasive and historically tenacious institution of sharecropping has always been a fruitful source of great economic controversies. While the earlier writings were almost universal in their disapproval of sharecropping (and seemed to ascribe little or no rationale for the persistence of it), an important characteristic of recent writings has been to uphold a plurality of views regarding the virtues of this institution. Not only have the recent papers been quite successful in highlighting the basic rationale behind the continuance of this somewhat enigmatic institution, they have addressed themselves to a number of important issues hitherto unexplored. Many strands of recent theoretical analyses have been brought to bear on the analysis of these problems, ranging from the simple competitive model to the esoteric theory of core, from the tricky Coase theorem of property rights to the intricate theory of portfolio behaviour, the principal-agent formulation and recent advances from the economics of information. Based on the present survey of theories, it seems fair to conclude that these recent sophisticated models have been quite illuminating and hold promise of further insights in future.