IDEAS home Printed from
   My bibliography  Save this article

The Generalized Efficiency Wage Hypothesis and the Scissors Problem


  • Dominic Li
  • Kai Y. Tsui


This paper examines some positive aspects of a two-sector model of a hypothetical less developed country, in which the state exercises control over the relative prices of agricultural and industrial goods, and workers behave according to the generalized efficiency wage hypothesis. It is shown that, contrary to conventional wisdom, a propeasant pricing policy does not necessarily lead to a decline in the state's accumulation of industrial goods; empirical evidence from China suggests that a propeasant pricing policy has actually been conducive to the increase of such a type of accumulation.

Suggested Citation

  • Dominic Li & Kai Y. Tsui, 1990. "The Generalized Efficiency Wage Hypothesis and the Scissors Problem," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 144-158, February.
  • Handle: RePEc:cje:issued:v:23:y:1990:i:1:p:144-58

    Download full text from publisher

    File URL:
    Download Restriction: only available to JSTOR subscribers

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Justin Yifu Lin & Miaojie Yu, 2008. "The Economics of Price Scissors : An Empirical Investigation for China," Governance Working Papers 22019, East Asian Bureau of Economic Research.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:23:y:1990:i:1:p:144-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.