The Effect of Three--Seven--Five Rent Reduction on the Management Efficiency of Taiwan's Rice Farms
Journal
經濟論文叢刊
Journal Volume
40
Journal Issue
2
Pages
189-233
Date Issued
2012
Date
2012-06
Author(s)
Abstract
This article explores whether or not the improvement in management efficiency from 1925--27 to 1950--51 was greater in tenanted farms than in self-cultivated farms, focusing on the possible impact of the Three-Seven-Five Rent Reduction reform implemented in 1949. The empirical results, based on the difference-in-difference approach, suggest that the impact is likely to be limited as the change in management efficiency between the two periods for the tenanted farms is highly similar to that for the self-cultivated farms. This finding is inconsistent with Chen Cheng's statement that the reform enhanced tenants' work incentive. Further results show that the impact of the reform on a more general efficiency index, measured by an adjusted profit-cost ratio, does not differ between the two types of farm after farm type, time period, rice type, and farm size are controlled in the estimations. Possible reconcilations for the neutrality of the policy effects could be (1) the reform resulted in a fixed rent tenancy system for the tenanted farms; (2) there was no substantial difference in the production function, factor prices or price of product faced by the two types of farm after the reform; and (3) the reform did not interfere with the management entitlement of the tenanted farms.
Subjects
三七五減租
three-seven-five rent reduction
技術效率
technical efficiency
配置效率
allocative efficiency
調整利潤成本比
the ratio of adjusted profit to adjusted cost
定額租
fixed rent tenancy
定率租
share tenancy
Type
journal article
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