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MISALLOCATION, SELECTION, AND PRODUCTIVITY
by
Restuccia, Diego
, Leight, Jessica
, Brandt, Loren
, Adamopoulos, Tasso
in
Agricultural production
/ Agriculture
/ Capital markets
/ China
/ Farmers
/ Longitudinal studies
/ misallocation
/ Occupational choice
/ Panel data
/ Productivity
/ Quantitative analysis
/ Resource allocation
/ selection
2022
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MISALLOCATION, SELECTION, AND PRODUCTIVITY
by
Restuccia, Diego
, Leight, Jessica
, Brandt, Loren
, Adamopoulos, Tasso
in
Agricultural production
/ Agriculture
/ Capital markets
/ China
/ Farmers
/ Longitudinal studies
/ misallocation
/ Occupational choice
/ Panel data
/ Productivity
/ Quantitative analysis
/ Resource allocation
/ selection
2022
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Do you wish to request the book?
MISALLOCATION, SELECTION, AND PRODUCTIVITY
by
Restuccia, Diego
, Leight, Jessica
, Brandt, Loren
, Adamopoulos, Tasso
in
Agricultural production
/ Agriculture
/ Capital markets
/ China
/ Farmers
/ Longitudinal studies
/ misallocation
/ Occupational choice
/ Panel data
/ Productivity
/ Quantitative analysis
/ Resource allocation
/ selection
2022
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Journal Article
MISALLOCATION, SELECTION, AND PRODUCTIVITY
2022
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Overview
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.
Publisher
Wiley,Blackwell Publishing Ltd
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