The theory of tenant farmers mainly explains the sub-lease system from the perspective of modern new institutional economics, subverts the previous traditional theory and establishes a new theory of tenant farmers. The essence of its theory is that the land use efficiency is the same through the change of some factors, whether it is sub-lease, fixed rent or self-cultivation by landlords. If the property right is weakened, or the government excessively intervenes in resource allocation, it will lead to the inefficiency of resource allocation. If land can be defined as private property right, the property right system can be clarified and land can be freely transferred, which is the only way to maximize production factors and land efficiency.

In this book, Zhang Wuchang deeply studied the relationship between the essence of contract and transaction cost under the condition of market economy. The research of modern contract economics has penetrated into all fields of economic research and become the hottest topic in modern economics, and Zhang Wuchang's "tenant farmer theory" has contributed greatly.

Let's say something beside the point. Some netizens chose this paper as the best paper in history because it was published in the best journal before the defense, and in view of the long length of the paper, the journal must be serialized like a novel:

Professor Zhang Wuchang's doctoral thesis "The Theory of Tenant Farmers" (1969, English) was published in JLE (Journal of Law and Economics) for four issues.

The Theory of Tenant Farmers is a doctoral thesis by Zhang Wuchang, a famous economist. Its original English edition was first published by University of Chicago Press in 1969. This collection of works by Zhang Wuchang gives a new explanation to the subletting system from the perspective of modern new institutional economics, subverts the previous traditional theory, establishes the "new tenant farmer theory" and lays the foundation of modern contract economics.

In "On Tenants (Introduction to the English Original Chinese Version)", Zhang Wuchang also deeply studied the relationship between the nature of contract and transaction costs under the conditions of market economy, and repeatedly emphasized the importance of property rights in economic operation and the important influence of transaction costs on property rights operation.