PT  - JOURNAL ARTICLE
AU  - Bai, Ying
AU  - Kung, James
AU  - Zhao, Yang
TI  - How Much Expropriation Hazard Is Too Much? The Effect of Land Reallocation on Organic Fertilizer Usage in Rural China
AID  - 10.3368/le.90.3.434
DP  - 2014 Aug 01
TA  - Land Economics
PG  - 434--457
VI  - 90
IP  - 3
4099  - http://le.uwpress.org/content/90/3/434.short
4100  - http://le.uwpress.org/content/90/3/434.full
SO  - Land Econ2014 Aug 01; 90
AB  - In China, land is reallocated on either a full-scale or a partial basis. By employing a unique farm survey that deliberately draws a distinction between full-scale and partial land reallocations, and by decomposing their respective expropriation risk effects, we find that the significantly negative effect of expropriation risk on organic fertilizer usage is driven solely by full-scale reallocation. Consistent with this finding, a reduction in the predicted expropriation hazard rate by half leads to a sizable increase of 491% in organic fertilizer usage in villages with a history of full-scale reallocation, and has an estimated productivity effect of 19.1%. (JEL O12, Q15)