Village Modeling: A Chinese Recipe For Blending General Equilibrium And Household Modeling

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Village Modeling: A Chinese Recipe For Blending General Equilibrium And Household Modeling

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Kuiper, M.H.

Abstract

This study provides the first quantitative analysis of the impact of rural-urban migration on a Chinese village economy. Existing village models do not reflect findings of the household literature on the importance of market imperfections. Prevailing imperfections in factor markets in rural China, however, necessitate an analysis that takes into account the nonseparability of household production and consumption decisions. This study therefore develops a methodology for analyzing interactions among households in a village economy, that bridges the current gap between household and village models. The resulting model is able to capture the impact of market imperfections on household decisions, as well as the impact of household decisions on other households in the village. Applying this model to a village in Jiangxi Province allows us to analyze the impact of rural-urban migration on households with and without access to migration.

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Paper provided by Agricultural Economics Research Institute in its series Report Series with number 29133.

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Date of creation: 2005
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Handle: RePEc:ags:aerirs:29133

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Kuiper, Marijke & van Tongeren, Frank, 2005. "Growing together or growing apart ? a village level study of the impact of the Doha Round on rural China," Policy Research Working Paper Series 3696, The World Bank. [Downloadable!]
Barbier, B. & Kuiper, M.H. & van Tongeren, F.W., 2005. "Developing country features that should be addressed in the global modelling of SEAMLESS-IF," Reports 9282, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society. [Downloadable!]
Flichman, G. & Donatelli, M. & Louhichi, M.K. & Romstad, E. & Heckelei, T. & Auclair, D. & Garvey, E. & van Ittersum, M. & Janssen, S. & Elbersen, B., 2006. "Quantitative models of SEAMLESS-IF and procedures for up-and downscaling," Reports 9297, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society. [Downloadable!]

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