Affiliation:
1. Department of Economics, York University
2. Department of Economics, University of Toronto
3. International Food Policy Research Institute
4. NBER
Abstract
We use household‐level panel data from China and a quantitative framework to document the extent and consequences of factor misallocation in agriculture. We find that there are substantial within‐village frictions in both the land and capital markets linked to land institutions in rural China that disproportionately constrain the more productive farmers. These frictions reduce aggregate agricultural productivity by affecting two key margins: (1) the allocation of resources across farmers (misallocation) and (2) the allocation of workers across sectors, in particular the type of farmers who operate in agriculture (selection). Selection substantially amplifies the productivity effect of distortionary policies by affecting occupational choices that worsen average ability in agriculture.
Funder
McGill University
National Bureau of Economic Research
International Myeloma Foundation
Cornell University
University of British Columbia
Hong Kong University of Science and Technology
European Environment Agency
Ohio State University
Universitat de Barcelona
McMaster University
Duke University
Einaudi Institute for Economics and Finance
Banca d'Italia
National University of Singapore
Social Sciences and Humanities Research Council of Canada
Canada Research Chairs
Bank of Canada
Subject
Economics and Econometrics
Cited by
55 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献