Abstract

In China, land is reallocated on either a full-scale or a partial basis. By employing a unique farm survey that deliberately draws a distinction between full-scale and partial land reallocations, and by decomposing their respective expropriation risk effects, we find that the significantly negative effect of expropriation risk on organic fertilizer usage is driven solely by full-scale reallocation. Consistent with this finding, a reduction in the predicted expropriation hazard rate by half leads to a sizable increase of 491% in organic fertilizer usage in villages with a history of full-scale reallocation, and has an estimated productivity effect of 19.1%.

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Additional Information

ISSN
1543-8325
Print ISSN
0023-7639
Pages
pp. 434-457
Launched on MUSE
2014-07-10
Open Access
No
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