[1].ThelandlaweffectiveinTaiwaninthepostwarperiodbutbeforethelandreformwasthesameasthatpromulgatedbytheChineseNationalGovernmentinJune30,1930,enforcedMarch1,1936,andamendedApril29,,theChineselandlayprovision,therewasnosubstanti,LandReforminTaiwan,pp.,RulesandRegulationsofLandAdministration（China:NationalGovernment,1947）.
[2].JCRR,”AnnualReports,”www.youxs.org.
[3].Wemayregardarightasalimitedauthoritytomakedecisionsaboutresources;thatdecisionauthorityusuallyhasapositivepresentvalue.
[4].Toavoidambiguities,wemaysimplyregard”labor”and”capital”asphysicalinputentities.
[5].,”mineralsattachedtoanylandshallnotbeeprivateproperty,evenifprivateownershipofthesaidlandhasbeendulyacquired”（www.youxs.org）.
[6].Transferstoalienswererestricted.
[7].
[8].Chen,RecordsofTaiwanLandReform,www.youxs.org.
[9].,”TheProblemofSocialCost,”TheJournalofLawandEconomics（October,1960）；,”SomeEconomicsofPropertyRights,”mimeographed（SantaMonica:TheRandCorporation,1963）.
www.youxs.org
Inthionstraintsofprivatepropertyrightsinafreemarket,thatis,,eachcontracti,azerocostofcontractingisassumed.[1]
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Infigure1,theabscissaoftheverticalsupplycurve,-5,,,
,diminishesashincreases,holdingthefarminginputsofonetenant（oronetenantfamily）,thatis,r=www.youxs.org,
r,isat60percentof.
Theverticaldistancebetween
and
risthemarginaltenantine,
（1-r）,definedasth
and
rrepresentsthetotalfarminginereceivedbythetenant,andtheareabelow
,hewillstayinfarmingandwilluseallthelandavailabletohimonthisfarmaslongasthemarginalproductivityoflandisgreaterthanzero,,thelandownerwillraisetherentalpercentage-thusthe
rcurve-untilthetenantsinefromfarmingequalshisalternativeearning.
However,therentalpercentageis,verticallinesT1,T2,T3……aredividinglinesofplotsoflandtothefirst,second,,themarginalproductoflandshiftsupwardrelativetothesituationwherethereisonlyonetenant.
……arethemarginalproductivitiesoflandforeachtenant,and
r,
r,……aretherespectivemarginalcontractrentcurvesforeachtenant.[2]Theineforeachtenantisrepresentedbytheareabetweentherespective
and
rcurvesforthetenant.
Tomaximizehiswealth,thelandownerwillmaximizethediffer-encebetweentheintegralofthemarginalproductivitiesoflandandtheintegralofthetenantsines,,iveearning.
Astheareaoflandassignedtoeachtenantbeessmaller,however,therentalpercentagethelandlordchargesmustbelowerforthetenanttoobtainhisalternativeearning,whichcallsforadecreaseinmarginalcontractrent,
r,
rwillleadtoalowerrentreceivedfromeachtenant,andifthelandsizepertenantcontinuestodecrease,therentalpercent:Maximizationofthelandownerswealth,givenhistotallandholdingsandthecostoftenantinputs,requiresthesimult,withprivatepropertyrightsoverlandandtenantinputresources,thetermsinasharecontractmutuallyagreeduponbythelandownerandthetenantwillincludetherentalpercentageandtheratioofnonlandtolandinputthatareconsistentwithequilibrium.