‘Do property rights matter in Russia? The Stolypin titling reform and agricultural productivity’1 Paul Castañeda Dower and Andrei Markevich2 Abstract We study the effect of improvements in peasants’ property rights launched by the Stolypin reform on agricultural productivity in early 20th century Russia. We find that the enclosure component of the reform caused an increase in land productivity because of better usage rights, not because of economies of scale. In addition, we find that the titling component of the reform, which improved transfer rights, contributed to an outflow of surplus labor from the countryside, decreasing the total productivity of land. We also discuss a criticism of the reform, that it increased tensions and conflicts in the Russian village, to explore whether conflicts limited the positive effect of reform. 1 Very preliminary please do not cite without authors permission. Acknowledgements: Earlier versions of this paper were presented at 2011 ‘Property rights workshop’ (Moscow, Russia) and seminar at Universidad Carlos III de Madrid. We would like to thank all the participants of these seminars for advice and comments. 2 Paul Castañeda Dower is from New Economic School (Moscow, Russia) and Centre of Economic and Financail Research ((Moscow, Russia); Andrei Markevich is from New Economic School (Moscow, Russia) and University of Warwick (Coventry, UK). 1. Introduction The 1906 Stolypin reform was one of the largest property rights reforms in Russian history. The reform introduced a set of policies to address rural poverty and low productivity of agriculture, affecting almost 13 million peasant households in European part of the empire. The main components of the reform granted peasants an opportunity to exit the commune, switching from communal to individual land ownership, and, in addition, an opportunity to consolidate their land strips into one allotment. Over the nine years of reform implementation (1907-1915) 2,478,000 peasant households exited the repartition commune and 1,221,000 households consolidated their plots, or about 20 and 10 percent of all households correspondingly. The Stolypin reform represented the last attempt of the tsarist regime to reform the Russian economy and the society before the 1917 Revolution. Because of that it received a huge amount of attention in the historical literature. The conventional view is that the reform failed because peasants were against the innovation in agrarian organization and, as a result, few peasants took advantage of the opportunities initiated by the reform. Moreover, the reform intensified tensions and conflicts in the Russian village, contributing to rather than preventing revolution (Anfimov 1980, Pallot 1999 etc). In contrast, the reform protagonists underline its positive impact on peasants’ incentives that should have led to the rapid economic development of Russian agriculture during the years before the First World War. They argue that the low take-up of the reform was limited by the supply of the reform rather than the demand (Tukavkin 2001, Williamson 2006, Davydov 2010). This paper undertakes an econometric approach to this debate. We take advantage of province level data regularly published by imperial authorities to evaluate the effect of the reform onto agricultural productivity. We find that the enclosure component of the reform indeed caused an increase in land productivity because of better usage rights, as supporters of the reform argued. At the same time, the improvement in transfer rights, produced by the titling component of the reform, contributed to an outflow of surplus labor from the countryside, decreasing total 2 productivity of land. We find that a net effect of exits from the commune, represented by title conversions from communal to individual tenure, onto land productivity is negative, as reform skeptics believed. We also cannot reject the argument that there is a negative impact of tensions and conflicts associated with the reform onto agricultural productivity. Beyond the historical interpretation of the Stolypin reform, our paper contributes to the economics literature on property rights. We take advantage of historical peculiarities of the Stolypin reform to disentangle the effect of changes in transfer and exclusion rights from the effect of changes in usage rights. We find that the latter effect associated with consolidation and enclosure of peasant allotments is more important, at least in the short-run. This finding is in contrast to the modern view of the effect of other historical examples of enclosures (Allen 1982, Hoffman 1991). 2. Russian pre-revolutionary agriculture and the Stolyin reform: an overview. 2.1. Institutional settings of Russian agriculture after the emancipation: the commune. The peasant commune dominated the institutional landscape of the Russian village after the abolishment of serfdom in 1861. The reform empowered the commune with broad decisionmaking authority over local issues both political and economic ones; the commune had to replace the serf-owner as the source of power in the village. In the economic sphere, in particular, the commune regulated the majority of peasants’ agricultural activities under the system of open fields. Each household cultivated a number of separate and scattered small strips, onto which the peasant land was divided, and accordingly had to coordinate their activities with their neighbors, i.e. the usage rights in land was limited under the commune system. Peasants’ transfer and exclusion rights in land varied with the commune type. They were very limited in repartition (peredel’naya) communes which composed about eighty percent of all communes. Family ownership and private property in land did not exist in repartition communes because of the periodical redistribution of allotments between commune members. Accordingly, peasants could not sell, lease, mortgage or transfer legally their strips under communal tenure 3 and periodical redistributions undertaken by the decision of the commune majority limited their exclusion rights in land. In addition, the commune regulated peasant mobility and accordingly the supply of labor because of mutual responsibility for tax payments. Seasonal workers and all peasants who wished to temporarily leave their native areas had to get passports from local communal authorities. In hereditary (podvornaya) communes, there were no repartitions and peasants enjoyed full exclusion rights in land. They also had better land transfer rights but still limited. With the exception of three Baltic provinces (Lifliandia, Estliandia, Kurliandia), all peasants in provinces of the European part of the empire had to be registered in a commune. An exit from a reparation commune was strongly regulated and demanded the consent of the entire commune with no compensation for leaving one’s allotment. An exit was easier in a commune with hereditary tenure; it required an individual either inside or outside the commune willing to take the land allotment and related obligations. The latter might include monetary compensation for land, i.e. quasi selling of plots was possible in the commune with hereditary tenure. Reparation communes strongly dominated in the majority of Russian provinces with the exception of western, former Polish, provinces of the empire. All communes in Vilno, Kovno, Grodno, Minsk, Podolia and Volin’ provinces were hereditary ones. The figure 1 presents geography of the communes by types in early 20th century. Figure 1 somewhere here. Repartition status did not necessary mean actual land redistribution, however. About one third of all repartition communes in early 20th century did not have repartitions of land since the emancipation. Their number was larger in the black soil provinces because of the higher profitability of agriculture. Rich peasants did not want to lose their land and lobbied against repartitions which were supposed to produce more equal distribution of land within the commune (Ziryanov 1992). Accordingly, land inequality among peasants within the commune in these provinces was higher. 4 There is a long discussion in historical and economic literatures on the economic consequences of the institution of the commune and the existence of the ‘agrarian crises’ in the post-emancipation Russian empire (e.g. Anfimov 1980). The standard argument, ascending to Vladimir Lenin (1899) and Alexander Gershenkron (1962), is that the free-rider problem caused by collective responsibility and poor property rights (especially in part of exclusion and transfer rights in repartition communes) created disincentives for peasants to invest in land; the strip system and poor usage rights locked peasants in backwardness agricultural techniques limiting the distribution of modern machinery; finally, restrictions on land sales and peasants’ mobility froze the development of factor markets, forced peasants to overinvest in agriculture, producing inefficient allocation of land and labor. All together these produced a negative impact on efficiency, that was almost three times lower in Russian in 1913 than in England (Anfimov et. al. 1995 p. 80), plunging Russian agriculture into crisis. However, estimations of national income of the Russian empire by Paul Gregory (1982) failed to reveal stagnating agricultural productivity; on the contrary, he found rapid growth of peasants’ incomes in the late XIX – early XX centuries. His macro reconstruction suggests that the commune was a more flexible institution than historians traditionally thought. Micro evidences on communes from Moscow province recently analyzed by Stephen Nafziger (2007, 2010) support this new complicated picture. Nafziger found a negative correlation between the number of repartitions and agricultural productivity but he also demonstrated that repartitions themselves were not exogenous for peasants and could act as substitution for undeveloped factor markets. 2.2. The Stolypin reform. 2.2.1. Legal Framework. The Stolypin reform (1906) was the largest institutional reform in Russian agriculture since the Emancipation. Politically, the reform was a governmental response to the Russian 1905 revolution and a wave of peasant unrests. The reform aimed to construct a class of small landowners in the Russian countryside who would provide political support of the government. 5 Economically, the reform attacked the problem of poverty and inefficiency of Russian agriculture, introducing a whole set of prospects available for peasants. The key innovation of the Stolypin reform was that peasant got an opportunity to chose their institutions settings, including property rights. In repartition communes peasants could choose between staying in and exiting from the commune. The consent of the commune was not necessary anymore. Under the 09.11.1906 decree, individual peasants could appeal for conversion of their land title from communal to personal property, i.e. hereditary tenure.3 If an applicant failed to reach a consensus with his commune on the precise conditions of exit, the local authority were empowered to solve such disputes. The final exit decisions had to be approved by local peasant courts (uezdnij krestyanskii sezd). An exit from the repartition commune and title conversion meant a substantial improvement in land exclusion and transfer right of an individual household. After the exit household land was protected from possible future repartitions; the household could also sell their strips to other peasants, to lease it legally or to mortgage in the Peasant bank. In hereditary communes the reform granted peasants rights to sell, to lease or to get mortgage their plots in the Peasant bank legally. The Stolypin reform also opened an opportunity for peasants to consolidate their plots in joint allotments (khutora and otruba). By a two-thirds majority, a commune – both repartition and hereditary ones - could vote for general redistribution in separated allotments. Alternatively, in a repartition commune an individual household could demand for consolidation of its strips to one place. In the latter case, the commune could try to block an individual request if consolidation was ‘impossible or inconvenient’ and meet the demand with money. Again local authorities were in charge of resolving disputes. Title conversion was a pre-requisite for consolidation under the 1906 decree. The consolidation changed greatly the land usage right of the household; after consolidation the commune could not force an individual household what to 3 To be precise it was hereditary tenure with personal ownership. Standard hereditary tenure supposed family ownership existed. In hereditary communes heads of households could also convert titles of their allotments from family to personal ownership. 6 cultivate anymore. A household consolidated its land could immediately shift to a new agricultural technique after the event, in particular a consolidated household could take advantage of economy of scales if it was applicable. At the same time one might argue that the consolidation improved slightly transfer rights, as it might be easier to sell a larger plot than separated strips. Initial conditions of the Stolypin reform were modified by 14.06.1910 and 29.05.1911 laws. The 1910 law simplified exit procedures for households in those communes where there were no repartitions since the very act of emancipation. Such households could apply for a titling certificate (udostoveritel’nii akt) for lands in their possession and could automatically get it without any discussion with the commune on the precise conditions of exit. Next, under the 29.05.1911 law, titling conversion was not anymore a pre-requisite for consolidation, i.e. consolidation of plots then could become another way to exit the commune. 2.2.2. The Stolypin reform in action. Figure 2 presents the dynamics of exits and tilting conversion under both the 1906 decree and 1910 law. Under the 1906 decree about one and a half hundred thousand households left the commune in an average year with a spike of seven hundred thousand during the first two years after the reform. In total, by January 1st, 1916 there were 2, 008, 432 exits with privatized land of 14, 122, 798 desiatinas or 15 429 157 hectares. In addition, 469, 792 households acquired titling certificates under the 14.06.1910 law, or about 80,000 annually. All in all 22% of households privatized 14% of communal land over nine years of the implementation of the reform. Figure 2 somewhere here. The share of households exiting the communes and converting land titles was larger in provinces with better quality of soil, being the highest in Southern (Kherson, Ekaterinoslav and Tavrida) and Black Earth provinces (Kiev and Kursk), Mogilev province in the West and Samara province in the East. Historians of the reform (Zyryanov 1992) pointed out that within provinces 7 households possessing ‘extra’ land allotments, which they would likely to lose under the next repartition, were among those who tried to get out of the commune first of all because the reform allowed them to keep these plots. Conflicts and tensions with the rest of the commune were inevitable outcome in such cases. Only a quarter of exiting households managed to get an agreement with the commune on the precise conditions of their exits during one month after application as the law prescribed (Williamson 2006 p. 149). Better options outside agriculture was another factor promoting exits from the commune; in this case peasants took an advantage of the reform to get additional finance that they would lose under the old rules. Figure 3 presents the consolidations dynamic. The number of households consolidated their plots both individually and in groups was steadily increasing by 1910 year and remained roughly at the same level after. The 1912 year represented a one year decline in consolidations. Individual consolidations constituted a majority of all consolidations. After 1910 year there were about 100,000 individual consolidations per year and 60,000 households consolidated their allotments jointly in groups. Joint consolidation required a two-thirds majority and, accordingly, less likely occurred in the communes with high level of tensions and conflicts because the collective action problem would not be solved. In addition historians of the reform (Pallot 1999) state that individual consolidations under the reform often caused new conflicts between separators and the commune. Anecdotal evidences suggest that in order to promote the reform local authorities consolidated the best land for individual separators with the protest of the rest of the commune. But conflicts and tensions rarely took an open form. Usually communes tried to sabotage individual consolidations and then prevent their normal operations. Their most powerful weapon was to block access to commune pasture and forest which were not subject for consolidation by law. Such blockade would be illegal but many communes organized it in practice. The other anti-enclosure actions included pasturing livestock on enclosure’s crops, arson and finally but in rare case open violence. Figure 3 somewhere here. 8 Despite within commune tensions and conflicts the demand for the reform was much higher than the supply. Numbers of applications both to exit and to consolidate were much higher than actual number of applications to exit approved by local courts and number of consolidations undertaken in practice. There was a shortage of officials able to implement the reform quickly. The discrepancy was especially big for consolidations; by the late 1915 only a bit more than two millions household consolidated their plots (either individually or in groups) about more than six million applied for. Over all years of the reform implementation there was a shortage of land survey engineers; their number in a region determined actual number of consolidations (Davydov 2011). There was a lot of bureaucratic red tape in approval of exits procedure, because court officials were overburden with other responsibilities. In 1908, the central government acknowledged the slow confirmation of exits by local courts and tried to reorganize their work, but without great success (see, for example, decree of the Ministry of Internal Affairs issued on 30.12.1909 and 14.06.1910 Ministry of Internal affairs 1910, 1 p. 15; 1912, 3 p. 106). 3. Hypothesis Improvements in exclusion rights should improve dramatically peasants’ incentives to invest in land because of the lack of repartition threat and accordingly to increase land productivity, but we argue that time was needed to launch this mechanism in full scale. The Stolypin reform was in operation for less than a decade only, so we can not verify the hypothesis of a long-run effect of changes in property rights initiated by the reform. In the short-run, it is more difficult to predict the effect of exiting onto agricultural productivity. However, at first glance, we argue that the reform should have had little effect on productivity. First, a title conversion without consolidation meant little from that point of view because strips of the Russian peasant were often too narrow – sometimes even several meters – and intermixed with other peasants’ plots, placing restrictions (sometimes even formal rules about use) on usage rights after exiting the commune. In such situation individual farmers had to continue to coordinate their decisions 9 about what to cultivate, when to sow etc. with the commune. Second, we could see an effect of individual exits due to a reallocation of land to the most productive individuals; however, land markets were not that well developed. Some institutional limitations remained even after the reform, in particular peasants could not sell their allotments to non-peasants and there were limits how much former commune land one peasant household could accumulate. Upon closer inspection, one could argue that adverse selection might take place. Negative mortality shocks, widespread in such a poor country as Russian empire in early 20 C., created temporal ‘surplus’ of land in particular households. As it is discussed in the historical section, these households could rush to take advantage of the reform and to privatize land which they would lose otherwise. If these households were also in lack of labor because of mortality shock, this could lead to negative selection. Better land liquidity caused by title conversion and better transfer rights changed household’s opportunity costs and eased financial constraints; peasants could explore other economic activities without losing income from land. Indeed, Chernina et al. (2011) find positive impact of the Stolypin reform onto internal migration. If there was an overinvestment of labor into agriculture as many historians argue (Allen 2003) and inefficient allocation of inputs, titling reform could remove surplus of labor from the countryside decreasing average land productivity but increasing marginal productivity of labor. Finally, exits and land privatization were costly and could have negatively impacted agricultural productivity temporarily because of the strain on peasants’ budgets. As it is discussed in the historical section, the exiting procedure was quite complicated that implied non trivial transaction costs. In particular, exits and land privatization may have produced conflicts and these conflicts could affect productivity negatively. One could also expect that conflicts were less pronounced in repartition communes where no actual repartitions occurred because there were no temporary winners and losers there. 10 While the commune regulated agricultural activities of individual households and this regulation persisted even after exiting the commune, this was not the case after consolidation. Thus, in the short-run, we would expect that changes in land usage rights caused by consolidation were positive and the most important effects of the reform. Given the discussion on conflicts we could expect that the usage effect is more pronounced in group consolidations which occurred in the communes with better collective decision-making and where the reform less likely generated new conflicts. Consolidations could also increase productivity because of scale effect; however, this effect probably demanded some time to be pronounced because of time needed to update input structure, investing into agricultural machines and the like. 4. Data and Methodology We construct a provincial level dataset on agricultural output, exits and consolidations in the early 20th C. Russian Empire before and during the Stolypin property rights reform. Using the variation in the participation in the reform within and across provinces, we are able to estimate the impact of the two aspects of the reform that should have affected productivity, enclosure and land certification. 4.1. Data Description We combine several official sources published by imperial authorities in the early 20th C. and figures extracted from the archives by previous generations of historians. First, we use data on the titling component of the reform from the journal of the Ministry of Internal Affairs (Izvestiya Zemskogo otdela MVD) and Dubrovskij (1963). Second, we employ data on consolidations from annual reports of the chief administration of agriculture and land engineering (various titles and years). Official annual statistical volumes of the Russian Empire are our sources for data on grain yields, livestock, rural and urban population; official annual volumes of the Ministry of Agriculture are the source on agricultural wages. We borrow data on railway deliveries of agricultural machines from Davydov (2010) and data on violent conflicts from Grave and 11 Dubrovskij (1926) and Dubrovskij (1956, 1963). Table A1 of the appendix provides a full list of our sources. Data availability determines the number of observations in our dataset. We collect information for forty-three European provinces of the empire, thirty-four of which repartition communes united at least 5 percent of rural population (see figure 1). We have average annual data on these provinces for seven periods, two before and five after the reform: 1905, 1906, 1907, 1908-1909, 1910-1911, 1912, 1913 and 1914, i.e. three hundred and one province-period observations in total. The availability of exit statistics, published irregularly, determines the reform periods.4 Table 1 presents summary statistics of our data. We report variables characterizing the implementation of the Stolypin reform in households per thousand of rural population units in order to make them comparable over provinces of different size.5 About three and a third households per thousand of rural population exited repartition communes in an average province in an average year during the period under consideration, almost three under the 1906 decree and a half under the 1910 law for communes where there were no actual reparations. If one consider only year after the reform and the only provinces where there were repartition communes, the figures are 6.4, 4.7 and 1.7, correspondingly. The number of consolidations was substantially smaller. Less than one household per thousand of rural population consolidated its allotment in an average province in an average year between 1905 and 1913. Only about one-third of them separated their land individually and two-thirds in groups, when all the land in a village was redistributed into consolidated plots at once. For the reform period only, the figures are larger 4 Due to the same reason of data availability we have to use data on exits from the commune since November, 6 1906 (the date when the government issued the reform decree) till January, 31 1908 for the 1907 period and since February, 1 1908 till December 31 1909 for the 1908-1909 period. 5 We have to divide number of households participated in the reform by rural population because we do not have data on households per province. An average rural household in European Russian was about six persons. 12 1.16, 0.37 and 0.79 households per a thousand of rural population. As one can see, the variation in reform implementation between provinces was substantial. Exit confirmation rate (actual exits to applications to exit ratio) and consolidation implementation rate (actual consolidations to applications to consolidate ratio) demonstrate reform realization relative to demand for the reform. As described in the historical section, the supply of the reform was binding because of red tape and shortage of land survey engineers. Average exits to applications to exit ratio was only twelve percent and consolidations to applications to consolidate ratio was about twenty-one percent. The other two variables characterizing implementation of the reform are a within commune conflicts index and the number of violent conflicts in a province. The former is a within commune measure constructed as a share of applicants willing to exit who failed to find a mutual agreement with the commune on the precise terms of exit and had to request local officials to determine them.6 As one could see, this was the case for more than a half of all applications. The latter is an aggregate measure of all types of open protests in the countryside with protests against landlords as the dominant type, i.e. conflicts with peasants with outsiders. Because of the 1905 Russian Revolution there was a lot of violence in the countryside, almost fifty cases in an average province in an average year. Land productivity in Russian European provinces was about eight hundred and forty three kilograms per hectare. It increased from about seven and a half hundred per hectare in 1905 to almost a ton in 1913. We cannot estimate labor productivity or TFP in the agrarian sector, since we do not have precise measures of labor or capital in the Russian village. Instead we employ rural population figures as a proxy for labor and livestock (cows and horses) for capital. In addition, using data on railway traffic of agricultural machines, we are able to construct a proxy for this type of capital in agriculture. There were about forty-eight rural citizens, less than 6 Unfortunately, being extracted from secondary works Grave and Dubrovskij 1926, Dubrovskij 1956 and 1963) both figures hare drawbacks. The first index lacks overtime variation being available only for the whole period under consideration; and the second measure does not vary over groups of provinces since our sources report it in an aggregate form. 13 one cow and a half horse per hectare of arable land in an average Russian province. In addition, we use the amount of credit which peasants received under the small loans program launched by the central government. This variable is a proxy of peasants’ access to credit in general because they basically did not have any other options (Korelin 1988). As one could see access to credit was very limited indeed, about one ruble per a thousand of hectares only. Rural wages during harvest season, share of urban population and migration to Asian part of the empire characterize three main options available to the peasant at that time: to become a hired worker either in agriculture or in a city, or migrate to Southern Siberia where the government provided land. Rural wages during the harvest peak time were about 30 rubles per month or about a quarter of 1913 GDP per capita (Markevich and Harrison 2011). Urban settlements were growing very fast but their average share was only about thirteen percent. Level of migration to Siberia was high (about 3 mln people over ten years) but much less impressive in relative terms; roughly one household per three thousand rural population migrated to Siberia annually. Number of sales of peasants’ allotments is an aggregate proxy for number of peasants quitting self-employment in agriculture and/or could represent the land market’s capacity for reallocating land to the highest valuing user. Finally, we have data on two other important characteristics of Russian European provinces, the share of repartition communes where no actual repartitions occurred since the Emancipation and the presence of local self-governance (zemstvo). Share of repartition communes without actual repartitions measures the strength of the repartition commune in a province at the start of the Stolypin reform. These repartition communes could not solve collective action problems. By its nature this variable is stable over time but it varies a lot from zero (in provinces where there were no repartition communes) to almost ninety percent in Kaluga province where the repartition commune basically did not function. We view the zemstvo dummy as a very important determinant of agricultural productivity in a province because zemstvo initiated various programs aimed to develop peasant agriculture. In particular, they 14 invested a lot into the disseminating of advanced knowledge and techniques as well as basic education among rural citizens. Local self-governments were introduced by the 1864 law but only in about half of all provinces. There were several expansions of number of provinces with zemstvo later, including one such expansion in 1911. Accordingly, this variable almost does not vary over time. 4.2. Econometric Specification To test our hypotheses on the impact of the Stolypin reform on peasant agriculture, we will use econometric techniques. Data availability to a large extent determines our preferred econometric specification. Our main dependent variable is yield per hectare. We estimate the effect of the reform onto land productivity and not onto labor productivity or TFP because the former is the most precisely measured. Our main explanatory variables track the implementation of the tilling and enclosure components of the Stolypin reform, namely number of exits from the commune accompanied by title conversions and the number of consolidations, both per thousand peasants. We use a linear OLS regression model with fixed region (group of provinces) and year effects. We prefer pooled OLS specification to the specification with provincial fixed effect because one of our important control variables, namely zemstvo dummy, does not vary over time. We also believe that the variation across provinces is an important source of identification. We employ current reform implementation variables because we are interested in a short-term effect of the reform. To be precise, we estimate the following equation: Yieldit = α + β*Exitsit + Ω* (Consolidationsit) + ∆ (Controlsit) +Λ(Regiont)+Ϭ(Yeari)+εit (1) where subscripts i and t index provinces and years, respectively. Yield is the output of grain per hectare of arable land; Exits and Consolidations are measures of the reform implementation. In different specifications, as Exits, we use either total exits per thousand of rural population, or exits under the 1906 decree and exits under the 1910 law separately. In the latter case, Exits is a vector of variables rather than a variable. Similarly, in different specifications, as Consolidations, 15 we use either total number of households that consolidated their plots or separate both types of consolidations, individual and in group. As controls we employ rural density per hectare of arable land, number of cows and horses, and agricultural machines per hectare of arable land to account for labor and capital inputs. We use rural wages to take into account supply and demand for labor in a province. We also use amount of credit per hectare of arable land and share of urban population to control for access to credit and to industrial markets, accordingly. We control for zemstvo because of its discussed role in agriculture promotion. Further, once exits were not possible in provinces without reparation communes, we add a dummy to control for that. Finally, we control for year fixed effects, Yeari , and twelve region fixed effects, Regiont. Year effects take into account any time trends, such as macroeconomic shocks; regional fixed effects account for unobserved regional characteristics, such as climate or quality of land. The primary concern with (1) is potential endogeneity because of selection of various types. We address this problem by taking advantage of the limited supply of the reform because of red tape and shortage of land survey engineers. We employ 2SLS approach, instrumenting either for number of exits or consolidations with exit confirmation rate and consolidation implementation rate, correspondingly. 5. Results and Analysis Table 2 reports our baseline results which come from running the pooled OLS specification in (1). While these baseline results suffer from endogeneity concerns, they provide a useful starting point. We see in columns 1 and 2 of Table 2 that the coefficient on share of exits is negative, significant at the 5% level, and the coefficient on the share of consolidations is positive, significant at the 10% level. Thus, at first glance, the results require a more nuanced explanation than the common assertion that improvements in property rights lead to higher productivity. They support the hypothesis that in the short-run changes in the usage right were more important than changes in exclusion and transfer rights. 16 Table 2 somewhere here. In columns 3 and 4, we separate total consolidations into individual consolidations and village-wide consolidations. As discussed in section 3, we expect that the effect of better usage rights should be stronger for village-wide consolidations. Indeed, we see that the coefficient is larger and more highly significant than for the total effect. The coefficient on individual consolidations is negative but insignificant. In column 5, we use all three measures of reform participation together. The effect of exits remains unchanged while the effect on village-wide consolidations becomes stronger. The overall changes in land productivity associated with the reform were substantial; according to the last specification, one standard deviation increase in exits was associated with 3 percent decrease in land productivity and one standard deviation increase in group consolidations with 4.2 percent increase in land productivity. Because both mean and variation in exits was larger than in group consolidations, the magnitude of the effects estimated in percentage points of households exited and consolidated in groups7 is smaller for the former and larger for the latter: 0.3 and 2.1 percents decrease and increase in land productivity or two and a half and seventeen kilograms per hectare accordingly. All our controls have intuitive signs while many of them are often insignificant. The coefficient of rural density, i.e. proxy for labor input, is always positive and significant at 10% level in four out of five specifications but relatively small and is in line with the statement of surplus of labor in the Russian commune village. One percentage point increase in rural density would lead to only 0.35 percent increase in land productivity. The coefficient on zemstvo dummy is always positive and significant in three out of five specifications. Land productivity was four and a half percent higher in provinces with local self-governments. Coefficients on cows, horses and agricultural machines are positive but always insignificant. Horses and machines as factors of production are positively correlated with grain output per hectare, while cows negatively, 7 To estimate the magnitude of the effect in household percentage points we multiply coefficients of reform implementation variables (household exits and consolidations per a thousand rural citizens) by six (an average household size) and divide by ten. 17 since animal husbandry was more developed in provinces where it had a clear comparative advantage relative to grain production. All regional dummies except one have significant signs capturing local advantages and disadvantages in agriculture. The most counterintuitive result in the baseline results is the negative effect of share of exits. Thus, we turn first to analyzing why we observe a negative coefficient. In table 3, we address endogeneity and selection concerns using an instrumental variables approach. We report the first stage in column 1 and the second stage results in column 2. The F-statistic of 170.4 suggests that there is ample explanatory power to use exit confirmation rate index as an instrument. The effect of exits remains negative and significant suggesting that it is unlikely that selection drives the results. Moreover, the magnitude of the effect becomes a bit larger. One percentage point increase in exits caused 0.35 percent decrease in land productivity. Table 3 somewhere here. In columns 3-7 of table 3, we explore the hypothesis that the negative effect is not at the margin but rather simply reflects the withdrawal of surplus labor from the agricultural sector. We try to measure this movement in three ways. First, we look at the land sales in column 3 and add an interaction between land sales (normalized to zero mean) and rural density in column 4. Next, we add share of migrants to Siberia (normalized to zero mean) in column 5 and interact this with rural density in column 6. Lastly, we add an interaction term between urban share (normalized to zero mean) and share of total exits in column 7 to proxy for rural to urban movement. The results are generally in favor of overinvestment hypothesis. In column 3 the coefficient on number of sales is insignificantly different from zero, but it becomes negative and significant at 10% level once we add the interaction of number of sales with rural density in column 4, implying that the effect of quitting self-employment in agriculture dominated in peasants’ sales. Moreover, the coefficient on the interaction itself is positive and significant, i.e. reallocation of recourses increased marginal productivity of labor in agriculture. One standard deviation in number of land sales in a province increased marginal land productivity almost by fifty percent. The coefficients 18 on internal migration variable, a direct measure of peasants outflow from the countryside in European Russian, and its interaction with rural density reported in column 5 and 6 demonstrate similar effect. There were more migrants where land productivity was lower, but internal migration was associated with increase in marginal productivity by labor. One standard deviation increase in number of migrants to Siberia increased marginal land productivity almost by one third. More importantly, once we account for migration, the coefficients on exits variable become insignificantly different from zero. Finally, the last column demonstrates that exits were more negatively associated with productivity in the most urbanized provinces, where peasants had better perspectives outside agriculture. Exits and land privatization were costly and could have negatively impacted agricultural productivity temporarily because of the strain on peasants’ budgets. As it is discussed in the historical section, the exiting procedure was quite complicated that implied non trivial transaction costs. In particular, exits and land privatization may have produced conflicts and these conflicts could affect productivity negatively. One could also expect that transaction costs and conflicts were less pronounced in repartition communes where no actual repartitions occurred because there were no temporary winners and losers there. In table 4, we investigate the hypothesis that transaction costs explain the negative relationship between exits and land productivity. First, we separate our exits measure into two: exits under the 1906 decree and exits in repartition communes who have not had a repartition since the emancipation (exits under the 1910 law) both per thousand of rural population. Transaction costs should be in general lower in the case of exits under 1910 law since there are fewer land transfers to trace the priority of claims. Column 1 shows that 1906 exits variable has a negative and significant coefficient and the 1910 exits variable has a positive but insignificant one generally consistent with the transaction costs explanation. However, this evidence is also consistent with the conflict hypothesis. We take advantage of historical peculiarities of the reform trying to distinguish between these two interpretations. 19 Table 4 somewhere here. The reform has another built in feature that varied transaction costs. After the 1910 decree, transaction costs decreased for all types of exits in the communes with and without actual repartitions, so we can test the hypothesis that transaction costs explains the negative effect of exits under 1906 decree by focusing on exits before 1910. Column 2 reports that the exits before 1910 can not explain the negative effect that we observe. In column 3, we include lagged exits to see if the negative effect is merely temporary. The coefficient on the lagged share of exits is negative but insignificant. To summarize, there is mixed evidence about transaction costs. For conflicts, we need to be careful to separate selection due to commune strength and actual conflicts caused by the reform. Thus, we include our measure of commune strength. In table 5, we see that in all specifications this variable gives the right sign, stronger communes have higher productivity but the effect is not statistically significant. Moreover, in column 2, interacting commune strength with exits, we find no statistical relationship. Next, we include a measure of internal conflicts in column 3 and a measure of outright violence between peasants and landlords in column 4. Conflicts are positively related with productivity most likely reflecting reverse causality. Interacting each of these variables, in columns 5 and 6, gives little statistical relationship. Thus, the results seem unsupportive of the basic conflict story. Table 5 somewhere here. While the evidence clearly supports the labor overinvestment story, both the transaction costs and conflict stories can not be rejected, and especially the costs explanation. After making a back of the envelope calculation, we can establish an upper bound on the impact of withdrawing surplus labor of 2.616 mln tones. We get this figure assuming that 20 percent of those who exited quitted self-employment in agriculture (Dubrovsky 1963 p. 359) and all of their lands was withdrawn from cultivation and did not produce any grain. We estimate that total negative effect of exits is roughly 4.44 mln tones, i.e. there is enough place to other factors be at work even under our heroic assumption of land withdrawing from the production. 20 Explaining the negative effect using overinvestment and possibly transaction costs or conflicts gives more solid footing to the observed positive relationship between consolidations and productivity. However, just as with exits, endogeniety and selection are concerns. Table 6 shows the first stage and second stage results from instrumental variables estimation of the effect of consolidations, separately for individual and village-wide. We use the specification as in column 5 of table 2, except that we instrument for consolidations, using the same instrumental variable for each (so we cannot instrument for both at the same time). Again F-statistics are high enough (21.7 and 45.5, correspondingly) to suggest that there is enough explanatory power to use consolidation implementation rate index as an instrument. Comparing the results with table 2, we see evidence of positive selection. Those communes that were worse off had more trouble consolidating as a village. We also show that there is no scale effect in columns 5 and 6 of table 6. Coefficients on average consolidated plots either individually or in group are both insignificantly different from zero. Table 6 somewhere here. 6. Conclusion. We reestablish a pessimistic view on the impact of the commune onto agricultural productivity. While the commune may have been flexible in adjusting to economic changes and peasants’ demands within a particular production activity, our results demonstrate that the restrictive land rights imposed by the commune severely limited the rural households’ production function in general, hampering activities in agricultural and non-agricultural sectors. The currently fashionable view of enclosure is that it did little to improve agricultural productivity. Our results suggest that village-wide enclosure increased agricultural productivity by 1.3 percent per year. Few would claim this represents a modest increase. In fact, if these estimates are taken seriously, they could explain as much as 0.7 percentage point of GDP growth. Therefore, the historical context matters a great deal in understanding how institutions affect economic development. 21 Finally, we can speculate about a widespread criticism of the reform that, by increasing the level of conflicts, it led the Russian countryside on a path towards revolution. Our results suggest that explanations of the greater willingness of peasants to support the revolution that rely on reform-induced conflicts worsening peasants’ living conditions by crippling agricultural productivity seem unlikely. However, the commune and the expectation of equal distribution of resources in the countryside could have sown the seeds of revolution. Anecdotal evidence suggests that conflicts induced by the reform played exactly along these lines. Undoubtedly, a more complete understanding of the reform as a cause of the revolution demands further research. 22 References. Allen, Robert C. (2003). Farm to Factory. A reinterpretation of the Soviet Industrial Revolution. Princeton and Oxford: Princeton University Press. Allen, Robert C. (1982), Enclosure and the Yeoman: The Agricultural Development of the South Midlands 1450-1850. NewYork;OxfordUniversity Press Anfimov Andrei M. (1980). Krestyanskoe khozyastvo Evropejskoj Rossii, 1881-1904 [Peasants households in European Russia, 1881 - 1904]. Moscow: Nauka. Central Statistical Committee of the Ministry of Interior Affairs (1905-1916). Statisticheskii ezhegodnik Rossii v … godu [Statistical yearbook of Russia in … year]. Annual volumes for 1904 - 1915, S-Peterburg, Central Statistical Committee of the Ministry of Interior Affairs (1902). Statisticheskii vremennik Rosijskoj imperii [Statistical periodic of Russian Empire]. Vol. 54. Urozhaj 1902 goda [Crop Yield in 1902], Saint-Petersburg. Chief administration of agriculture and land engineering (1908, 1909, 1910, 1911, 1912, 1913, 1914). Annual reports of various titles. Chernina Eugenia, Paul Castaneda Dower and Andrei Markevich (2011). Property Rights, Land Liquidity and Internal Migration. Mimeo. Davydov Mikhail A. (2010). Vserossijskij rinok v kotze 19 – nachale 20 vv. I zheleznodorozhnaya statistika [All-Russian market in the late 19th –early 20th centuries and railway traffic statistics]. S-Petersburg: Aleteya. Dubrovskij S.M. (1956). Krest’yanskoe dvizhenie v revolutsii 1905-1907 godov [Peasants’ movement in the 1905-1907 revolution]. Moscow. Dubrovskij S.M. (1963). Stolypinskaya agrarnaya reforma [The Stolypin agrarian reform]. Moscow. Gershenkron, Alexander (1962). “Agrarian Policies and Industrialisation: Russia 1861-1917” in The Cambridge Economic History of Europe” vol. VI. Grave and Dubrovskij S.M. (1926). Krest’yanskoe dvizhenie nakanune revolutsii 1905 goda [Peasants’ movement before the 1905 revolution]. In 1905 god [The year 1905]. Vol. 1. Moscow, Leningrad. Gregory, Paul (1982). Russian National Income 1885-1913. Cambridge: Cambridge University Press. Hoffman, Phillip (1991). “Land Rents and Agricultural Productivity: The Paris Basin, 14501789,” The Journal of Economic History 51, 771-805. 23 Korelin A.P. (1988). Selsko-khozyastvennij kredit v Rossii [Agricultural credit in Russia in the late 19th – early 20th century. Moscow: Nauka. Lenin, Vladimir (1899). Razvitie kaitalisma v Rossii [Development of capitalism in Russia]. S-Petersburg. Markevich Andrei and Mark Harrison (2011), ‘Great War, Civil War, and Recovery: Russia’s National Income, 1913 to 1928’, The Journal of Economic History, forthcoming Ministry of Interior Affairs (1908-1915)Novosti Zemskogo Otdela [The News of Zemsky Department]. Vol. 2, 1908; Vol. 3, 1910; Vol. 3, 1912; Vol. 6, 1914, Vol7, 1915. Ministry of agriculture. Department of agricultural economics and statistics (19061914).Sbornik po selskomu khozyastvuza … god [Annual agricultural volume for .. year] Annual volumes for 1906-1914, Saint-Petersburg. Ministry of internal affairs. (1908-1914). Izvestia zemskogo otdela MVD. [News of provincial department of the Ministry of internal affairs]. Monthly volumes for 1908-1914, S-Petersburg. Nafziger, Steven (2007). Land Redistribution and the Russian Peasant Commune in the 19th century.Mimeo. Nafziger, Steven (2010) ‘Peasant communes and factor markets in late nineteenth-century Russia’, Explorations in Economic History, 47: 381–402. Pallot, Judith (1999). Land Reform in Russia, 1906-1917. Peasant Response to Stolypin’s Project of Rural Transformation. Oxford: Clarendon press. Tukavkin V.G. (2001). Velikorusskoe krest’yanstvo I Stolypinskaya agrarnaya reforma. [Great Russian peasants and the Stolypin agrarian reform] Moscow. Turchaninov N. (1910). Itogi pereselencheskogo dela [The results of resettlement movement] vol.1.Saint-Petersburg. Turchaninov N. (1915). Itogi pereselencheskogo dela [The results of resettlement movement] vol.2.Saint-Petersburg. Williams, Stephen F. (2006) Liberal reform in an Illiberal Regime. The Creation of Private Property in Russia, 1906 - 1915, Hoover Institution Press. ZyrianovP. (1992). Krest’yanskayaobshchinavEvropeiskoiRossiiv 1907 – 1914 gg.[Peasant commune in European Russia in 1907-1914], Moscow. 24 Figure 1: A map of provinces in the European part of Imperial Russia 25 Figure 2. Exits and exits in repartition communes without actual repartitions (under 1910 Source. Dubrovksy (1963). Sources: Annual reports of the chief administration of agriculture and land engineering 26 Table 1. Summary statistics Variable Nhhs exited per 1000 peasants (total) Nhhs exited per 1000 peasants under 1906 decree Nhhs exited per 1000 peasants under 1910 law (in communes without actual repartitions) Nhhs consolidated land per 1000 peasants (total) Nhhs consolidated land individually per 1000 peasants Nhhs consolidated land in groups per 1000 peas Average size of individually consolidated plot Average size of plot consolidated in groups Exit confirmation rate (exits to applications ratio) Consolidation implementation rate (consolidations to application ration) Conflicts index (caused by exits) N open violence affairs Yield tones per hectare Rural density per sq km Number of cows per hectare Number of horses per hectare Agricultural machines in tons per hectare Rural monthly wage in harvest season Urban share N migrants per 1000 peasants Nsales per 1000 peasants Share of repartition communes without actual repartitions since emancipation Amount of small credit loans per 1000 hectares Local self-government dummy (zemstvo) Repartition province dummy 27 Obs 265 Mean 3.35 Std. Dev. 6.62 Min 0 Max 41 300 2.72 5.52 0 38.86 266 0.45 1.18 0 7.65 301 0.75 1.19 0 8.02 300 0.22 0.43 0 2.9 301 0.54 0.96 0 5.4 300 6.2 16.76 0 213.2 301 6.31 7.66 0 84.77 299 0.12 0.19 0 0.86 301 43 301 301 301 301 301 0.21 0.57 46 0.843 48.07 0.88 0.54 0.27 0.35 74.77 0.26 21.55 0.6 0.25 0 0.95 0 0.13 5.35 0.2 0.14 2.43 43 520 1.59 113.51 3.91 1.5 294 0.00027 0.00028 0.000001 0.002 297 301 300 301 28.53 0.132 0.31 2.18 9.26 0.122 0.31 1.93 13.5 0.026 0 .003 0 70.2 0.741 1.16 8.7 42 40.37 30.09 0 88.4 298 1.04 2.89 0 44.09 301 301 0.77 0.81 0.42 0.39 0 0 1 1 Table 2. OLS estimates of the effect of exits and consolidations on agricultural productivity. Pooled OLS Pooled OLS 1 sh_totexits Pooled OLS 2 Pooled OLS 3 Pooled OLS 4 5 -0.004** -0.004** [0.002] [0.002] sh_cons_ind 0.016* [0.009] sh_cons_ind_sing -0.007 -0.051 [0.025] [0.033] sh_cons_ind_coll rdensity Ncowspd Nhorsespd agrmachpd rwage zemstvo repartition_province crcooppd ushare [0.010] [0.012] 0.004* 0.003* 0.004* 0.003* [0.002] [0.002] [0.002] [0.002] [0.002] -0.032 -0.034 -0.056 -0.035 -0.028 [0.088] [0.097] [0.095] [0.097] [0.089] 0.047 0.055 0.082 0.054 0.037 [0.193] [0.203] [0.201] [0.202] [0.190] 82.082 32.684 41.431 33.018 79.198 [73.035] [66.264] [66.625] [66.392] [69.675] 0.006** 0.005 0.005* 0.005 0.006** [0.003] [0.003] [0.003] [0.003] [0.002] 0.049 0.103* 0.108* 0.099* 0.038 [0.046] [0.056] [0.058] [0.056] [0.048] 0.104 0.072 0.071 0.071 0.105 [0.076] [0.074] [0.075] [0.074] [0.077] 0.003 -0.001 -0.000 -0.002 -0.001 [0.011] [0.002] [0.002] [0.002] [0.010] -0.065 -0.015 -0.012 -0.027 -0.097 [0.124] [0.121] [0.120] [0.122] [0.126] Yes Yes Yes Yes Yes 0.546*** Yes 0.799*** Yes Time Effects Yes 28 0.030** 0.003 Regional Effects Constant 0.025** 0.830*** Yes 0.552*** Yes 0.341** [0.144] Observations R-squared [0.189] 254 0.581 [0.157] 296 0.565 295 0.565 Robust standard errors in brackets. *** p<0.01, ** p<0.05, * p<0.1 29 [0.187] [0.143] 296 0.567 254 0.588 Table 3. IV estimates of the effect of exits, selection and the overinvestment hypothesis. First Stage 2SLS Pooled OLS 1 2 3 sh_totexits sh_cons_ind_sing sh_cons_ind_coll rdensity Ncowspd Nhorsespd agrmachpd rwage zemstvo repartition_province ivexitsimple Pooled OLS Pooled OLS 4 Pooled OLS 5 Pooled OLS 6 7 -0.005** -0.004*** -0.004** -0.002 -0.001 -0.004*** [0.002] [0.002] [0.002] [0.002] [0.002] [0. 001] 0.683 -0.049 -0.057 -0.058* -0.057 -0.057 -0.053 [0.595] [0.031] [0.034] [0.034] [0.036] [0.037] [0.033] 1.234*** 0.031*** 0.027* 0.032** 0.032** 0.031** 0.033*** [0.427] [0.011] [0.014] [0.014] [0.014] [0.014] [0.011] 0.001 0.003* 0.003* 0.003* 0.003* 0.003** 0.003* [0.033] [0.002] [0.002] [0.002] [0.002] [0.001] [0.002] -1.525 -0.024 -0.025 -0.028 -0.024 -0.028 -0.031 [1.338] [0.083] [0.089] [0.087] [0.085] [0.079] [0.090] 1.743 0.027 0.038 0.044 0.027 0.022 0.052 [2.434] [0.179] [0.190] [0.184] [0.181] [0.164] [0.190] 3,247.520** 80.919 75.817 61.878 50.198 48.243 124.173* [1,268.642] [64.757] [68.799] [65.984] [66.304] [62.612] [70.518] 0.046 0.006*** 0.006** 0.006** 0.006** 0.006** 0.005** [0.067] [0.002] [0.003] [0.003] [0.003] [0.003] [0.002] 0.354 0.032 0.038 0.029 0.014 0.017 0.042 [1.113] [0.046] [0.048] [0.045] [0.045] [0.044] [0.049] 1.002 0.125 0.103 0.096 0.112 0.097 0.090 [0.879] [0.086] [0.076] [0.070] [0.069] [0.062] [0.079] 0.073 -0.001 -0.002 -0.006 -0.007 -0.006 0.001 [0.239] [0.009] [0.010] [0.010] [0.010] [0.010] [0.010] -4.179* -0.096 -0.099 -0.074 -0.069 -0.049 0.012 [2.421] [0.116] [0.128] [0.121] [0.129] [0.119] [0.100] 0.007 -0.043* -0.036 -0.015 [0.014] [0.024] [0.025] [0.027] 0.001*** 0.001** 0.001 25.923*** [3.907] crcooppd ushare sh_hhsales Nsh_hhsalesrdensity 30 [0.000] sh_migrants [0.000] [0.000] -0.054* -0.262*** [0.030] [0.088] Nsh_migrantsrdensity 0.003** [0.001] sh_totexitsNushare -0.040*** [0.012] Regional Effects Yes Time Effects Yes Constant Yes Yes Yes Yes -4.837** Yes 0.409*** Yes 0.790*** Yes 0.834*** Yes 0.629*** [2.287] [0.112] [0.142] [0.142] [0.167] Observations R-squared 253 0.769 253 0.588 254 0.588 Robust standard errors in brackets. *** p<0.01, ** p<0.05, * p<0.1 31 254 0.594 Yes Yes Yes Yes 0.688*** 0.787*** [0.165] [0.141] 253 0.602 253 0.611 254 0.597 Table 4. The effect of transaction costs related to exits on agricultural productivity. Pooled OLS Pooled OLS 1 sh_exits sh_nrep_exit sh_cons_ind_sing sh_cons_ind_coll rdensity Ncowspd Nhorsespd agrmachpd rwage zemstvo repartition_province crcooppd ushare sh_exits19001910 Pooled OLS 2 3 -0.004** -0.004** -0.004** [0.002] [0.002] [0.002] 0.003 0.006 0.003 [0.009] [0.008] [0.009] -0.045 -0.034 -0.035 [0.035] [0.040] [0.035] 0.028** 0.027** 0.029** [0.013] [0.013] [0.013] 0.003* 0.003* 0.003* [0.002] [0.002] [0.002] -0.028 -0.032 -0.031 [0.089] [0.089] [0.089] 0.040 0.047 0.048 [0.190] [0.192] [0.192] 76.158 84.946 76.216 [72.042] [74.693] [71.529] 0.006** 0.006** 0.006** [0.003] [0.003] [0.003] 0.034 0.030 0.031 [0.048] [0.050] [0.049] 0.092 0.084 0.087 [0.076] [0.079] [0.079] -0.001 -0.001 0.000 [0.010] [0.010] [0.010] -0.094 -0.101 -0.097 [0.133] [0.134] [0.134] -0.005 [0.007] lagsh_exits -0.002 [0.003] 32 Regional Effects Yes Time Effects Yes Constant Yes Yes 0.794*** Yes 0.782*** Yes 0.608*** [0.143] [0.147] [0.155] Observations R-squared 254 0.587 254 0.588 253 0.579 Robust standard errors in brackets. *** p<0.01, ** p<0.05, * p<0.1 33 Table 5. The effect of reform-induced conflict on agricultural productivity. Pooled OLS Pooled OLS 1 sh_exits sh_nrep_exit sh_cons_ind_sing sh_cons_ind_coll nrepsh1905 rdensity Ncowspd Nhorsespd agrmachpd rwage crcooppd ushare zemstvo repartition_province sh_exitsnrepsh1905 34 Pooled OLS 2 Pooled OLS 3 Pooled OLS 4 Pooled OLS 5 6 -0.004** -0.005 -0.005** -0.004** -0.004 -0.006** [0.002] [0.004] [0.002] [0.002] [0.002] [0.003] 0.006 0.006 0.002 0.005 0.005 0.003 [0.007] [0.007] [0.008] [0.008] [0.008] [0.008] -0.039 -0.039 -0.080** -0.070** -0.069** -0.070** [0.034] [0.034] [0.035] [0.034] [0.034] [0.034] 0.028** 0.028** 0.031** 0.029** 0.029** 0.030** [0.013] [0.013] [0.014] [0.014] [0.014] [0.014] -0.001 -0.001 -0.001 -0.001 -0.001 -0.001 [0.001] [0.001] [0.001] [0.001] [0.001] [0.001] 0.002 0.002 0.003* 0.003* 0.003* 0.003* [0.002] [0.002] [0.002] [0.002] [0.002] [0.002] -0.050 -0.051 -0.062 -0.068 -0.067 -0.070 [0.091] [0.090] [0.092] [0.091] [0.091] [0.091] 0.102 0.105 0.165 0.170 0.168 0.171 [0.206] [0.204] [0.207] [0.204] [0.205] [0.203] 79.001 78.612 104.905 121.017 123.409 131.192* [71.094] [70.973] [73.927] [75.598] [76.558] [75.814] 0.006** 0.006** 0.005* 0.005** 0.005** 0.005** [0.002] [0.002] [0.003] [0.002] [0.002] [0.002] -0.003 -0.003 -0.011 -0.012 -0.012 -0.012 [0.009] [0.009] [0.009] [0.009] [0.009] [0.009] -0.110 -0.108 -0.099 -0.105 -0.108 -0.113 [0.133] [0.132] [0.143] [0.141] [0.142] [0.140] 0.042 0.042 0.050 0.025 0.028 0.034 [0.050] [0.050] [0.049] [0.054] [0.057] [0.058] 0.100 0.105 0.057 0.080 0.077 0.071 [0.078] [0.081] [0.081] [0.091] [0.095] [0.094] 0.000 [0.000] conflict2 0.246*** 0.273*** 0.281*** 0.279*** [0.073] [0.078] [0.083] [0.078] 0.000** 0.000** 0.000** [0.000] [0.000] [0.000] violenceregion sh_exitsconflict2 -0.002 [0.006] sh_exitsviolence 0.000 [0.000] Regional Effects Yes Time Effects Yes Constant Yes Yes Yes 0.798*** Yes 0.798*** Yes 0.703*** Yes 0.646*** Yes 0.650*** [0.148] [0.147] [0.154] [0.158] [0.159] Observations R-squared 254 0.589 254 0.589 254 0.607 254 0.614 Robust standard errors in brackets. *** p<0.01, ** p<0.05, * p<0.1 35 Yes Yes Yes 0.669*** [0.162] 254 0.615 254 0.615 Table 6. IV estimates of consolidations and scale effects. sh_totexits First Stage First Stage 2SLS 2SLS 1 2 3 4 rdensity Ncowspd Nhorsespd agrmachpd rwage zemstvo repartition_province IVsimple_ind crcooppd ushare av_cons_ind_coll Pooled OLS 5 6 0.005 0.017** -0.005** -0.005*** -0.004** -0.004** [0.004] [0.007] [0.002] [0.002] [0.002] [0.002] 0.248 0.063 -0.074** -0.048 -0.051 [0.243] [0.116] [0.035] [0.033] [0.033] 0.065 0.014 0.068** 0.028** 0.030** [0.070] [0.019] [0.034] [0.012] [0.012] sh_cons_ind_sing sh_cons_ind_coll Pooled OLS -0.002 -0.015*** 0.003* 0.003** 0.003 0.003* [0.002] [0.003] [0.002] [0.002] [0.002] [0.002] -0.274** -0.613** -0.003 -0.009 -0.030 -0.028 [0.134] [0.253] [0.094] [0.088] [0.089] [0.089] 0.227 0.796** 0.025 0.017 0.034 0.037 [0.170] [0.383] [0.185] [0.179] [0.188] [0.192] 324.511 751.481 58.865 64.642 115.367 75.484 [242.404] [508.107] [75.569] [67.478] [80.721] [70.456] 0.008 0.010 0.005* 0.006** 0.006** 0.006** [0.005] [0.011] [0.003] [0.002] [0.003] [0.002] -0.160 0.099 0.054 0.029 0.049 0.036 [0.131] [0.147] [0.046] [0.048] [0.045] [0.049] -0.053 -0.163 0.107 0.108 0.097 0.105 [0.056] [0.135] [0.075] [0.075] [0.078] [0.078] 0.639** 1.726*** [0.262] [0.384] -0.037 0.069 0.004 -0.003 0.002 -0.004 [0.045] [0.075] [0.012] [0.010] [0.011] [0.011] -0.572 0.158 -0.040 -0.118 -0.128 -0.089 [0.370] [0.497] [0.136] [0.118] [0.137] [0.123] -0.002 [0.002] av_cons_ind_sing 36 0.001 [0.001] Regional Effects Yes Time Effects Yes Constant Yes Yes Yes -0.173 Yes 0.842** Yes 0.365*** Yes 0.420*** Yes 0.827*** [0.222] [0.373] [0.123] [0.111] [0.147] Observations R-squared 254 0.547 254 0.631 254 0.569 Robust standard errors in brackets. *** p<0.01, ** p<0.05, * p<0.1 37 Yes Yes 254 0.579 Yes 0.801*** [0.142] 254 0.590 254 0.589 Table A1. Variables definitions and data sources Variablename Sh_totexits Sh_exits Sh_nrep_exit Sh_cons_ind Sh_cons_ind_sing Sh_cons_ind_coll Av_cons_ind_sing Av_cons_ind_coll Ivexitsimple IVsimple_ind Conflicts2 Nrepsh1905 violenceregion Yield Rdensity Ushare Ncowspd 38 Variable definition Source Number of households exited the commune both under 1906 decree and 1910 Ministry of Internal Affairs (1908, law per 1000 rural citizens 1915, 1910, 1912, 1914). Number of households exited the commune under 1906 decree only per 1000 Ministry of Internal Affairs (1908, rural citizens 1915, 1910, 1912, 1914). Number of households exited the commune under 1910 law (in communes without actual repartitions) per 1000 rural Ministry of Internal Affairs (1908, citizens 1915, 1910, 1912, 1914). Chief administration of agriculture Number of households consolidated land and land engineering (1908, 1909, per 1000 rural citizens (total) 1910, 1911, 1912, 1913, 1914). Chief administration of agriculture Number of households consolidated land and land engineering (1908, 1909, individually per 1000 rural citizens 1910, 1911, 1912, 1913, 1914). Chief administration of agriculture Number of households consolidated land in and land engineering (1908, 1909, groups per 1000 rural citizens 1910, 1911, 1912, 1913, 1914). Chief administration of agriculture Average size of individually consolidated and land engineering (1908, 1909, plot 1910, 1911, 1912, 1913, 1914). Chief administration of agriculture and land engineering (1908, 1909, Average size of plot consolidated in groups 1910, 1911, 1912, 1913, 1914). Exit confirmation rate (ratio of exits confirmed by local courts to all applications Ministry of Internal Affairs (1908, to exit) 1915, 1910, 1912, 1914). Consolidation implementation rate (ratio of Chief administration of agriculture all implemented consolidations to all and land engineering (1908, 1909, applications to consolidated) 1910, 1911, 1912, 1913, 1914). Conflicts index (share of applications to exit who failed to get an agreement with the commune and had to appeal to local officials to organize their exits Dubrovskij (1963) Share of repartition communes without actual repartitions since emancipation Dubrovskij (1963) Grave and Dubrovskij (1926); Number of outright violent conflicts Dubrovskij (1956, 1963) Grain yield tons per hectar, calculated as total grain yield divided by total area under grain crops (desyatinas are transformed into Central Statistical Committee of hectares at 1.0925 rate; puds are transformed the Ministry of Interior (1902, 1903, into kg at 16.38 rate) 1905-1916) Rural population per 1 sqkilometeron January 1, corresponding year (sqversta are Central Statistical Committee of transformed into sq kilometers at 1.138 rate) the Ministry of Interior (1905-1916) Central Statistical Committee of Urban share in a province the Ministry of Interior (1905-1916) Number of horses per hectare of crops, Central Statistical Committee of calculated as total number of horses divided the Ministry of Interior (1905-1916) Nhorsespd Agrmachpd Rwage Hhsales Crcoopd Migrants 39 by total area under grain crops (desyatinas are transformed into hectares at 1.0925 rate) Number of cows per hectare of crops, calculated as total number of horses divided by total area under grain crops (desyatinas are Central Statistical Committee of transformed into hectares at 1.0925 rate) the Ministry of Interior (1905-1916) Agricultural machines in tons per hectare of crops, calculated as total number of horses divided by total area under grain crops (desyatinas are transformed into hectares at 1.0925 rate; puds are transformed into kg at 16.38 rate) Davydov (2010) Daily earnings of rural workers in harvest Ministry of agriculture (1906season 1914) Number of land sales by peasants Ministry of Justice (1907-1915) Amount of small credit loans per 1000 Department of small credit (1905hectares 1915) Number of migrant families passed through Syzran and Chelyabinsk registration centers per 1000 rural citizens Turchaninov N. (1910, 1915)
© Copyright 2026 Paperzz