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Household Property Rights Formation in Rural China: Farmers' Preference, Transaction Cost and the Efficiency Hypothesis

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  • Yi Che
  • Zuojun Fan
  • Yan Zhang

Abstract

This paper examines the effects of farmers' preference, transaction cost and household productivity on land reallocation in rural China. Empirical results from a sample of 2102 households show that farmers' preference has no effect on land reallocation. The transaction cost has negative effects on partial‐scale land reallocation but has no effect on full‐scale land reallocation. Interestingly, highly productive and unproductive households receive more partial‐scale land reallocation than households with a median level of productivity, supporting the efficiency hypothesis (Brandt et al., 2004).

Suggested Citation

  • Yi Che & Zuojun Fan & Yan Zhang, 2019. "Household Property Rights Formation in Rural China: Farmers' Preference, Transaction Cost and the Efficiency Hypothesis," Asian Economic Journal, East Asian Economic Association, vol. 33(2), pages 143-164, June.
  • Handle: RePEc:bla:asiaec:v:33:y:2019:i:2:p:143-164
    DOI: 10.1111/asej.12182
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