Monitoring Costs in Chinese Agricutural Teams

Xiao-yuan Dong and Gregory Dow

Journal of Political Economy, 1993, vol. 101, issue 3, 539-53

Abstract: Large productivity gains have been observed in Chinese agriculture following the transition from collective farming to household contracting. Using a model of mutual monitoring in an egalitarian production team, the authors estimate that labor supervision absorbed about 10-20 percent of total labor time for a sample of Chinese agricultural teams during 1970-76. These agency costs are lower than comparable estimates derived from aggregate data. Copyright 1993 by University of Chicago Press.

Date: 1993
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