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Compliance under in-between monitoring: evidence from a national land inspection system

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  • Lu, Yi
  • Yan, Haosheng
  • Zhang, Zebang

Abstract

Monitoring serves as a crucial governance mechanism within a decentralized system, but its effectiveness depends on the scheme design. This paper investigates the effect of an in-between monitoring system on the compliance of local governments. Specifically, the national land inspection in China introduces local bureaus at a few locations tasked with routine inspections in local and adjacent regions. The routine inspection significantly increases compliance despite some signs of decay over time. Specifically, it reduces the proportions of new construction land and land for central-restricted industries, and increases the proportions of land for subsidized housing and transparency in land transfer. The effectiveness of inspection hinges on the trade-off between local capture and information accessibility. This paper contributes to the literature by highlighting the scheme design of monitoring in enhancing the compliance of local governments.

Suggested Citation

  • Lu, Yi & Yan, Haosheng & Zhang, Zebang, 2026. "Compliance under in-between monitoring: evidence from a national land inspection system," Journal of Economic Behavior & Organization, Elsevier, vol. 245(C).
    • Handle: RePEc:eee:jeborg:v:245:y:2026:i:c:s0167268126000971
    DOI: 10.1016/j.jebo.2026.107511
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    Keywords

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    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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