Between Politics and Markets examines how the decline of central planning in post-Mao China was related to the rise of two markets - an economic market for the exchange of products and factors, and a political market for the diversion to private interests of state assets and authorities

Using data from a recent national survey on the ownership reform of state-owned enterprises in China, we study the effects of reducing politician control and agency problems on a number of reform outcomes. Taking into account the endogenous nature of the reform, we find that these outcome...