Local versus Global Separability in Agricultural Household Models: The Factor Price Equalization Effect of Land Transfer Rights
Commonly employed global tests for separability between production and consumption decisions are theoretically inappropriate when the market failures creating non-separabilities differentially constrain some, but not all households. Simulated maximum likelihood estimates using Chinese panel data reject the restrictions implied by a global separability test in favor of regime-specific or local separability tests. The estimates also show that a global approach to separability obscures the significant effect that less-encumbered land transfer rights would have on shadow factor price equalization across households and allocative efficiency. The findings on transfer rights suggest a resolution to the debate in China on further property rights reform. Copyright 2002, Oxford University Press.
Year of publication: |
2002
|
---|---|
Authors: | Carter, Michael R. ; Yao, Yang |
Published in: |
American Journal of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA. - Vol. 84.2002, 3, p. 702-715
|
Publisher: |
Agricultural and Applied Economics Association - AAEA |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Dimensions and Diversity of Property Rights in Rural China: Delimmas on the Road to Further Reform
Liu, Shouying, (1996)
-
Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform
Liu, Shouying, (1998)
-
Carter, Michael R., (1999)
- More ...