This paper investigates the factor markets, namely, the land, labor, and credit markets in China's rural areas after the household responsibility system reform. It is found that the institution of the household-based farming system created an allocative inefficiency and the factor markets are a...

A model of household optimizing behaviour in a household farm and a cooperative farm is presented in this paper. It is found that a household will supply more effort in the household farm than in the cooperative farm, and, as a consequence, the total output produced by the household farming...

"This paper explores endogenous institution formation under a catching-up strategy in developing countries. Since the catching-up strategy is normally against the compartive advantages of the developing countries, it can not be implemented through laissez-faire market mechanisms, and a...