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Smallfarmsandfragmentedplotsarehallmarksofagricultureinless-developedcountries, and there is evidence of high returns to land consolidation and reallocation. Complementarities,holdoutandasymmetricinformationmeanthatprivatetradewill be slow to reallocate land, and imply that market design has the potential to contribute to the development process. Complexity concerns are, however, paramount. We present results from a framed field experiment with Kenyan farmers, comparing the performance of several continuous-time land exchanges. Farmers are able to achievehighdegreesofefficiency,andtocomprehendandgainfromarelativelycomplicated package exchange.
Written with Jonathan de Quidt (IIES, Stockholm, and CESifo), Tom Wilkening and Nitin Yadav (both University of Melbourne)