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Incentive Effects of Price Rises and Payment-System Changes on Chinese Agricultural Productivity Growth

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  • John McMillan
  • John Whalley
  • Zhu Li Jing

Abstract

This paper analyzes the relative importance of the major factors underlying the post-1978 increase in China's agricultural productivity. We present a method for assessing the role of price increases and strengthened individual incentives due to the introduction of the responsibility system. Data on pre- and post-1978 Chinese agricultural performance are used to calculate incentive indices, giving the fraction of their marginal product that peasants received under the pre-1978 regime.

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File URL: http://www.nber.org/papers/w2148.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2148.

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Date of creation: Jan 1987
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Handle: RePEc:nbr:nberwo:2148

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  1. Theodore Groves & John O. Ledyard, 1985. "Incentive Compatibility Ten Years Later," Discussion Papers 648, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  2. Lin, Justin Yifu, 1988. "The Household Responsibility System in China's Agricultural Reform: A Theoretical and Empirical Study," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages S199-224, Supplemen.
  3. Stiglitz, Joseph E, 1976. "The Efficiency Wage Hypothesis, Surplus Labour, and the Distribution of Income in L.D.C.s," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 185-207, July.
  4. Macrae, John, 1977. "Production, distribution and economic organization : Income distribution and resource allocation at the team level in rural China," Journal of Development Economics, Elsevier, vol. 4(4), pages 365-385, November.
  5. McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
  6. Oliver Hart & Bengt Holmstrom, 1986. "The Theory of Contracts," Working papers 418, Massachusetts Institute of Technology (MIT), Department of Economics.
  7. Freixas, Xavier & Guesnerie, Roger & Tirole, Jean, 1985. "Planning under Incomplete Information and the Ratchet Effect," Review of Economic Studies, Wiley Blackwell, vol. 52(2), pages 173-91, April.
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