Land Rental Markets as an Alternative to Government Reallocation? Equity and Efficiency Considerations in the Chinese Land Tenure system
The authors develop a model of land
leasing with agents characterized by unobserved
heterogeneity in ability and presence of an off-farm labor
market. In this case, decentralized land rental may
contribute to equity and efficiency goals and may have
several advantages over administrative reallocation. The
extent to which this is true empirically is explored using
data from three of China's poorest provinces. The