Misallocation, selection, and productivity: A quantitative analysis with panel data from China

We use household‐level panel data from China and a quantitative framework to document the extent and consequences of factor misallocation in agriculture. We find that there are substantial within‐village frictions in both the land and capital markets linked to land institutions in rural China that d...

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Autores principales: Adamopoulos, Tasso, Brandt, Loren, Leight, Jessica, Restuccia, Diego
Formato: Journal Article
Lenguaje:Inglés
Publicado: Econometric Society 2022
Materias:
Acceso en línea:https://hdl.handle.net/10568/141343
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author Adamopoulos, Tasso
Brandt, Loren
Leight, Jessica
Restuccia, Diego
author_browse Adamopoulos, Tasso
Brandt, Loren
Leight, Jessica
Restuccia, Diego
author_facet Adamopoulos, Tasso
Brandt, Loren
Leight, Jessica
Restuccia, Diego
author_sort Adamopoulos, Tasso
collection Repository of Agricultural Research Outputs (CGSpace)
description We use household‐level panel data from China and a quantitative framework to document the extent and consequences of factor misallocation in agriculture. We find that there are substantial within‐village frictions in both the land and capital markets linked to land institutions in rural China that disproportionately constrain the more productive farmers. These frictions reduce aggregate agricultural productivity by affecting two key margins: (1) the allocation of resources across farmers (misallocation) and (2) the allocation of workers across sectors, in particular the type of farmers who operate in agriculture (selection). Selection substantially amplifies the productivity effect of distortionary policies by affecting occupational choices that worsen average ability in agriculture.
format Journal Article
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institution CGIAR Consortium
language Inglés
publishDate 2022
publishDateRange 2022
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publisherStr Econometric Society
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spelling CGSpace1413432025-12-08T10:29:22Z Misallocation, selection, and productivity: A quantitative analysis with panel data from China Adamopoulos, Tasso Brandt, Loren Leight, Jessica Restuccia, Diego households agriculture selection productivity We use household‐level panel data from China and a quantitative framework to document the extent and consequences of factor misallocation in agriculture. We find that there are substantial within‐village frictions in both the land and capital markets linked to land institutions in rural China that disproportionately constrain the more productive farmers. These frictions reduce aggregate agricultural productivity by affecting two key margins: (1) the allocation of resources across farmers (misallocation) and (2) the allocation of workers across sectors, in particular the type of farmers who operate in agriculture (selection). Selection substantially amplifies the productivity effect of distortionary policies by affecting occupational choices that worsen average ability in agriculture. 2022-05-31 2024-04-12T13:37:44Z 2024-04-12T13:37:44Z Journal Article https://hdl.handle.net/10568/141343 en Open Access Econometric Society Adamopoulos, Tasso; Brandt, Loren; Leight, Jessica; and Restuccia, Diego. 2022. Misallocation, selection, and productivity: A quantitative analysis with panel data from China. Econometrica: Journal of the Econometric Society 90(3): 1261-1282. https://doi.org/10.3982/ECTA16598
spellingShingle households
agriculture
selection
productivity
Adamopoulos, Tasso
Brandt, Loren
Leight, Jessica
Restuccia, Diego
Misallocation, selection, and productivity: A quantitative analysis with panel data from China
title Misallocation, selection, and productivity: A quantitative analysis with panel data from China
title_full Misallocation, selection, and productivity: A quantitative analysis with panel data from China
title_fullStr Misallocation, selection, and productivity: A quantitative analysis with panel data from China
title_full_unstemmed Misallocation, selection, and productivity: A quantitative analysis with panel data from China
title_short Misallocation, selection, and productivity: A quantitative analysis with panel data from China
title_sort misallocation selection and productivity a quantitative analysis with panel data from china
topic households
agriculture
selection
productivity
url https://hdl.handle.net/10568/141343
work_keys_str_mv AT adamopoulostasso misallocationselectionandproductivityaquantitativeanalysiswithpaneldatafromchina
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AT leightjessica misallocationselectionandproductivityaquantitativeanalysiswithpaneldatafromchina
AT restucciadiego misallocationselectionandproductivityaquantitativeanalysiswithpaneldatafromchina