Endowments, Technology, and Factor Markets: A Natural Experiment of Induced Institutional Innovation from China's Rural Reform
利用中国农户调查数据，检验诱致性制度创新假说，分析地区内土地、劳动力和租赁市场的出现与农户要素禀赋分布的关系，以及杂交水稻对要素市场出现的影响。
Abstract The induced institutional innovation hypothesis postulates that new institutions are innovated to exploit profitable opportunities arising from institutional disequilibrium. The removal of legal restrictions on factor market exchanges after recent reforms in China resulted in institutional disequilibrium. This paper utilizes data from a household survey in China to explore ( i ) the relationship between the emergence of land, labor, and rental markets in a region and the distribution of factor endowments across rural households in that region, and ( ii ) the impact of hybrid rice on the emergence of factor markets in that region. The results are consistent with the induced institutional innovation hypothesis.