Last, Binswanger, Rosenzweig and Shahidur Khandker describe how the availability of education infrastructure and rural banks co-determine agricultural investment and agricultural output's price responsiveness, with public infrastructure investments in turn being determined by agroclimatic potential and bank locations being influenced by public infrastructure investments. With Rosenzweig, Binswanger has developed an influential model of agricultural production and its behavioural and material determinants that facilitates the analysis of barriers to the emergence of rural financial markets and efficient agricultural factor markets, along further implications. By contrast, earlier work of Binswanger and Rosenzweig addresses contractual arrangements, employment and wages in rural labour markets. Another major contribution of Binswanger's research – together with Klaus Deininger and Gershon Feder – is an analysis of the power relationships governing rental and sales markets for agricultural land in developing countries and their impacts on policy distortions, revolts and reforms. Environment, Natural Resource Management and Policies In the 1990s, Binswanger's research turned increasingly towards environmental topics. For instance, he showed that general tax policies, special tax incentives, the rules of land allocation and the agricultural credit system in Brazil all contributed to the acceleration of deforestation of the Amazon rainforest, increasing in the process the size of land holdings and reducing the chances of the poor to become farmers. Turning to water rights, Binswanger (together with Mark Rosegrant) makes the case for tradable water rights as a means to formalize and secure the water rights held by water users, reduce transaction costs and induce the internalization of opportunity costs and negative externalities (e.g. due to irrigation). Addressing the relationship between natural resource degradation and population growth in Colombia, Binswanger (with Jon Heath) argues that rather than being population-driven, natural resource degradation is mainly driven by policies that constrain poor people's access to land. Land Policy and Land Reform Since the mid-1990s, Binswanger has also extensively written about land policy and land reform. Studying South Africa's case, Binswanger and Deininger argue that the dualistic structure of its farm structure – a few very large, highly productive farms often owned by Afrikaner and many relatively small farms owned by native Africans – cannot be explained due to economies of scale in the commercial sector, but is instead due to systematic historical distortions in land allocation, output markets, and access to infrastructure, rural finance and public services; the topic of land reform in South Africa is further explored with regard to