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Original Articles

An application of adverse selection: rural agricultural production in China since the 1950s

Pages 915-917 | Published online: 22 Aug 2006
 

Abstract

Asymmetric information problems in collective rural agricultural production in China after 1955 is examined by applying the theory of adverse selection. This application shows the movement of equilibrium stages from a pooling contract to a separating one can explain the process of rural reform in China from the collective institution arrangement to the household responsibility system.

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