First,thoughsomeclassicaleconomistsdiscussedthedivisionofland,theydidnotanalyzeitinageneralequilibriumframework（seesectionAofthischapter）.SinceMarshall,thepossibilityofthelandlord'sallocatinghistotalholdingstoseveraltenantshasbeenignored（seesectionBofthischapter）.Whilethisisvalidinanalyzinganexcisetax,undersharetenancythecostoflandandthedistributionoflandaretherebyneglected.Second,thepercentagesharehasusuallybeentakenasgiven.Undersharetenancy,however,therentalpercentageisadiscretionaryvariable.Third,withatax,thegovernmentisnotcontractingtomaximizewealth.Inotherwords,thetax-equivalentanalysisfailstoofferanyexplicittreatmentofthetermsinasharecontractwhichtheparticipatingpartiesmustmutuallyagreetoabidebywhenthecontractisformed.
Wecannotanalyzethewayapersonusesresourceswithoutfirstspecifyingthenatureofhispropertyrights.Itistruethatoncethelandsizeandtherentalpercentageareundercontracttoatenanthepreferstoworkorinvestlessinlandthanifhecultivateshisownland.Butunderprivateownershipofland,thelandlord'sincentivetomaximizehiswealthisnotreduced.Wemaywellrepeataconclusionreachedinthelastchapter:Itdoesnotmatterwhetherthelandownerstipulatesthatthetenantistoinvestmoreinlandandchargesalowerrentalpercentageorwhetherthelandownerinvestsinlandhimselfandchargesthetenantahigherrentalpercentage;theinvestmentwillbemadeifitleadstoahigherrentalannuity.
Yet,itwouldbemisleadingtosaythatallearlieranalystsofsharecroppingweredeceivedbythetax-equivalentapproachandinvariablyarrivedattheconclusionofinefficientresourceuse.Somedidso,someexpresseddoubt,andsomeseemtohaveabandonedthetaxapproachaltogether.Indeed,asurveyoftheliteratureonthesubjectrevealsthatattimeseventheirerrorsaremostinterestingandtheirinsightsaresometimesmostpro-found.[2]
A.TheClassicalView
Notingthatsharecroppers"havebeensolongindisuseinEng-landthatatpresentIknownoEnglishnameforthem,"AdamSmithwroteofthemetayers（sharecroppers）inFrance,whichhebelievedweresuccessorsof"theslavecultivatorsofancienttimes."[3]Oftheproductivenatureofthemetayagesystem,Smithwrote:
Itcouldnever,however,betheinterest[ofthemetayers]tolayout,inthefurtherimprovementoftheland,anypartofthelittlestockwhichtheymighthavesavedfromtheirownshareoftheproduce,becausethelord,wholaidoutnothing,wastogetone-halfofwhateveritproduced.Thetithe,whichisbutatenthoftheproduce,isfoundtobeaverygreathindrancetoimprovement.Atax,therefore,whichamountedtoone-half,musthavebeenaneffectualbartoit.[4]
AlthoughtheanalogytoataxwhichSmithdrewmighthaveledsucceedingwritersastray,thecontextinwhichheplacedthediscussionofthemetayersisalsosignificant.Smithdidnotfocusonthemetayagesystemitself;rather,inonefullchapterheattemptedtotracethedevelopmentoflandtenurearrangementswitheconomicinterpretations.[5]
AccordingtoSmith'sview,the"slave"cultivatorsprecedingthemetayerswereevenlessproductive,because"apersonwhocanacquirenoproperty,canhavenootherinterestbuttoeatasmuch,andtolaboraslittleaspossible."[6]Thusformoreproductivelandusethemetayerssucceededthe"slaves."Sinceinhisviewthemetayagesystemwasalsodefective,Smithclaimedthat"byveryslowdegrees,"themetayersweresucceededby"farmers……,whocultivatedthelandwiththeirownstock,
payingarentcertaintothelandlord."[7]AlthoughSmithfavoredfixed-rentcontracts（farmers）oversharecropping,hewasnonethelessconcernedwiththe"insecurity"ofthefarmersbecauseofexpirationofthelease:"Thepossessionevenofsuchfarmers,however,waslongextremelyprecarious,andstillissoinmanypartsofEurope."[8]Headvocated"thelawwhichsecuresthelongestleasesagainstsuccessorsofeverykind,"butsuchalawwas,tohisknowledge,"peculiartoGreatBritain."[9]InSmith'sview,therefore,theBritishleasingarrangement-afreeholdwithafixedrentandaleaseforlife-wasmorehighlydevelopedthanthoseinotherpartsofEurope.[10]
Althoughthemeaningofeconomicefficiencywasnotclarifieduntilmuchlater,Smith'sideaofanalyzingthedevelopmentoflandtenuresystemsongroundsofmoregainfulresourceuseiscertainlyanimportantone;however,theapproachheusedisnotdeepenoughtoyieldfruitfulresults.Oncepropertylawsdefineaspecificsetofconstraintsonpetition,theremayexistseveralformsofcontractualarrangementswhichimplythesameresourceuse.（Whydifferentcontractsarechosenwillbediscussedinthenextchapter.）Whenthesepropertylawsarealtered,thecontractualarrangementsmaychange.Itfollowsthattheappropriateapproachinanalyzinglandtenuredevelopmentistotracethealterationsinpropertylaws;andnot,asSmithdid,tointerpret（oradvocate）thechangeinlawsbytracingwhatmightappeartobedefectiveleasingarrangements.