Misallocation, Selection, and Productivity: A Quantitative Analysis With Panel Data From China
错配、选择与生产率：基于中国面板数据的定量分析
We use household‐level panel data from China and a quantitative framework to document the extent and consequences of factor misallocation in agriculture. We find that there are substantial within‐village frictions in both the land and capital markets linked to land institutions in rural China that disproportionately constrain the more productive farmers. These frictions reduce aggregate agricultural productivity by affecting two key margins: (1) the allocation of resources…