Critical Masses in the Decollectivisation of Post-Soviet Agriculture

Posted: 11 Aug 2009

See all articles by Martin Petrick

Martin Petrick

Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO)

Michael R. Carter

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

Date Written: June 2009

Abstract

Decollectivisation in post-Soviet agriculture has generally been slow except for islands of complete individualisation. Our model interlinks two types of critical mass phenomena that can explain these outcomes. First, positive network externalities reshape decollectivisation incentives after a sufficient number of reform pioneers shift to private farming. Second, workers have preferences for behaving in conformity with their social reference group. This allows collective farm managers interested in cementing their own power to manipulate reference groups by limiting workers' horizons. We provide empirical support with a threshold regression based on a unique data set of regional reform outcomes in Moldova.

Keywords: agricultural transition, former Soviet Union, social interaction effects, network externality, Moldova, D23, O18, P32, Q15

Suggested Citation

Petrick, Martin and Carter, Michael R., Critical Masses in the Decollectivisation of Post-Soviet Agriculture (June 2009). European Review of Agricultural Economics, Vol. 36, Issue 2, pp. 231-252, 2009, Available at SSRN: https://ssrn.com/abstract=1447118 or http://dx.doi.org/jbp022

Martin Petrick (Contact Author)

Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) ( email )

Germany

Michael R. Carter

University of Wisconsin - Madison - Department of Agricultural & Applied Economics ( email )

427 Lorch St.
Madison, WI 53706-1503
United States
608-263-2478 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
470
PlumX Metrics