In the other two areas, changes in property rights followed a change in the relative price of land, but these changes were brought about exogenously, by the intervention of the government or interest groups in guiding property rights in a particular direction rather than endogenously generated as the theory predicts. Nowhere has tropical agriculture led the escape from poverty. With time , information technology will give tropical and landlocked countries new opportunities to participate in the global economy. The owner has the right to control or determine use of the existing assets, to restructure the property and sell or lease it. Generally , secure individual Property Rights over land , or secure and long term use rights on land, induce exertion of higher levels of labour and management efforts and higher levels of investment to protect or enhance land fertility.
Individuals face risks from the production process, from the market, and from health factors.
Individuals are interested in their own wellbeing. Individuals value consumption. For all individuals, there is a point beyond which they begin to dislike additional effort. The degree of risk aversion may vary between individuals and for the same individual between different levels of wealth. Folie 23 C1.