Cooperation in the Moshav

The moshav is a cooperative village in which members own and operate their farms individually. The moshav supervises cooperative marketing of most of the farms' products. But its most important function is as financial intermediary since its members are handicapped when acting by themselves in the credit market. Despite occasional internal conflicts about the cooperative marketing, in the long run the moshav enhances capital accumulation and income. This paper reports an empirical study of cooperative marketing, credit, and capital in the moshav. A dynamic model is developed and estimates are presented.