The development of rural land markets and land misallocation
利用中国农村家庭面板数据，研究土地市场不完善如何导致土地错配，发现土地市场将土地从低能力农户重新分配给高能力农户，从而减少错配并提高总生产率。
Abstract This paper investigates the effect of imperfect land markets on land misallocation using detailed rural household panel data from China. To identify this effect, we exploit a pilot program on developing land markets as the instrumental variable. We find that land markets reallocate land from low‐ability to high‐ability households, thereby reducing land misallocation. We focus on three characteristics of land markets: informal markets, land rental services and land use rights security. Our findings emphasize the importance of formal land markets with low transaction costs and secured land use rights in reducing misallocation. We also find that land markets result in an increase in aggregate productivity.