The study looked at how land rental markets in different Indian states affect agricultural productivity. States with more land rental activity have less misallocation of land, leading to more efficient land use over time. By analyzing household data and land market institutions, the researchers found that efficient land reallocation can increase agricultural productivity by 38% on average, and even more in states with highly distorted rental markets. Land market distortions play a significant role in the differences in agricultural productivity across Indian states, accounting for about one-third of the variations.