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Hazards Of Expropriation:Tenure Insecurity And Investment In Rural China

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  • Jacoby, Hanan G.
  • Li, Guo
  • Rozelle, Scott

Abstract

This paper uses household data from Northeast China to examine the link between investment and land tenure insecurity induced by China’'s system of village-level land reallocation. We quantify expropriation risk using a hazard analysis of individual plot tenures and incorporate the predicted “hazards of expropriation” into an empirical analysis of plot-level investment. Our focus is on organic fertilizer use, which has long lasting benefits for soil quality. Although we find that higher expropriation risk significantly reduces application of organic fertilizer, a welfare analysis shows that guaranteeing land tenure in this part of China would yield only minimal efficiency gains.

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File URL: http://purl.umn.edu/11960
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Paper provided by University of California, Davis, Department of Agricultural and Resource Economics in its series Working Papers with number 11960.

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Date of creation: 2002
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Handle: RePEc:ags:ucdavw:11960
Contact details of provider: Phone: 530-752-1517
Fax: 530-752-5614
Web page: http://www.agecon.ucdavis.edu/
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Keywords: Land Economics/Use;

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  1. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-65, May.
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  9. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
  10. North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 803-832, December.
  11. Kung, James Kaising, 1994. "Egalitarianism, subsistence provision, and work incentives in China's agricultural collectives," World Development, Elsevier, vol. 22(2), pages 175-187, February.
  12. Qiaolun Ye & Scott Rozelle, 1994. "Fertilizer Demand in China's Reforming Economy," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(2), pages 191-207, 07.
  13. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
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