Abstract

This paper applies an aggregate agricultural production function in the analysis of the change in grain production in China in 1952–1957. It shows that in that period of radical institutional transformation the marginal rate of substitution of land for labor rose sharply. Its economic effect can be understood as a land-saving organizational change with consequences similar to a disembodied land-saving technical change: rapid decline in the marginal product of land, attributed to a slow pace of increase in complementary inputs and rapid intensification of farming; and a steep rise in the marginal product of labor, directly related to its better utilization.

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