AccordingtoevidenceobtainedfromAsianagriculture(seechapters3and4,sectionAofthischapter,andAppendixB),,asisshownincolumns7and8intable2,underthesharerestrictionin1951,farmingpopulation(admittedlyaroughmeasureoflaborinput)perunitoflandwas47percenthigherintenantfarmsthaninownerfarms.[2]-landratiointenantfarmsthaninownerfarmsimpliesthatthemarginalproductoflandintenantfarmswashigher,andthemarginalproductoftenantlaborwaslower,,theyclaim,allowedthetenantagreaterabilitytoinvest,,however,,ifmorecostly(effective)fertilizersledtoahigherrentalannuity,,[3]andthatthelandownermayinvestinlandandraisetherentalpercentage.Theperiod1949-51reportedlyhadthehighestinterestratesonrecordinTaiwan.[4]Theprevailinginflationdoesnotseemtoexplainfullywhytheserateswereconsiderablyhigherthanthoseoflateryears.[5]Inthesameperiod,(sincetheexistingpoliticalinstabilityandhighinterestratestendtodiscourageinvestment),,,"theinterestrateschargedbythesebanksareuniformlyregulatedbythegovernment,whicharemuchlowerthantheprevailingratesinlocalmoneymarkets,…ricemerchantswerenotallbenefitted…becausemostofthemcouldhardlyobtaintheneededcreditfromthebanks."

[1].Seesourcescitedinchapter1,sectionB.[2].,Chinesewritersemphasizedonlytheincreasedtenantinputs.Theyear1951perhapsyieldsabetterapproximationthan1949and1950,sincein1951partofthepublic-tenantlandswassoldtotenants(recallthatasmallportionofthetenantlandswasunderstateownership).,asmallmarginshouldbeallowedformoreintensivetenantfarming,sinceagreaterportionofpaddyfieldswereundertenancy(seetable4inchapter8).[3].SeeIrvingFisher,TheTheoryofInterest(NewYork:MacmillanCo.,1930);andJackHirshleifer,"OntheTheoryofOptimalInvestmentDecision,"JournalofPoliticalEconomy(August,1958).[4].,RiceMarketinginTaiwan(Taipei:JCRR,1955),,"theinterestrateschargedbythesebanksareuniformlyregulatedbythegovernment,whicharemuchlowerthanprevailingratesinlocalmoneymarkets,ricemerchantswerenotallbenefittedbecausemostofthemcouldhardlyobtaintheneededcreditfromthebanks."

[5].Aswasseenintheprecedingfootnote,themoneyrateofinterestduring1949-51wasintheneighborhoodof50percentperyear,,aftertheissuanceofanewcurrencyin1949,,inflationcontinuedinTaiwan,thoughatalowerrate,,HectareYieldsandMarginalProductivitiesImpliedbyIncreasedFarmingIntensityUnderthesharerestriction,recall,,andsincedifferentphysicalattributesofcropsrequiredifferentinputintensitiesfortheircultivation,,withtheaddedconstraintonrentalsharing,-andthemarginalproductsoftenantinputshaddecreased—,therefore,.[1]