The purpose of economic reform is to reduce distortions and enhance efficiency. However, when reforms are partial and incremental, individuals and local governments are often able to capture the rent inherent in the gradual transition process. Young (2000) warned that such rent-seeking behavior might lead to increasing market fragmentation. Empirical studies have shown the opposite in the product market. This article argues that as the rent from China's...
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INFORMACIÓN
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2007/05/01
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Artículo de periódico
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77543
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1
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1
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2013/05/27
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Disclosed
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Incremental reform and distortions in China's product and factor markets
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marginal product of labor