Variables in the Model
| Variable | Definition |
|---|---|
| Chosen by migrant | |
| f | Proportion of land left fallow |
| Chosen by landlord | |
| G | Size of grant |
| Parameters | |
| T | Land available to be granted |
| w | Landlord’s outside income in the second |
| r | period Landlord’s return in the second period |
| θ | Landlord’s return if r > 0 |
| π | Probability that r > 0 |
| q | Marginal cost of expropriation |
| P | Return on land left fallow |
| c | Subsistence needs of migrant |
| e | Tribute per unit of land granted |
| b | Discount factor |
| Other variables | |
| yj,kk | Income of i in period j under conditions k |
![]() | Expected discounted utility of i in period j |
| α(f) | Probability of expropriation |