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Leader Networks and Interjurisdictional Contracting in Land Conversion Quotas

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  • Nancy H. Chau
  • Yu Qin
  • Weiwen Zhang

Abstract

Do network connections between government officials and administrative units facilitate efficient land use contracting across jurisdictions? This article leverages data from a groundbreaking policy in China where a strict quota-bound land use policy was replaced with an alternative, allowing between-county trade in land conversion quotas. We unpack the determinants of the boundary between trading and autarkic jurisdictions and unveil leader-related drivers of transaction costs between jurisdictions in a gravity-style estimation. We catalogue personal and career histories of county-level leaders and present evidence that leader networks derived from employment history are robustly trade-facilitating but nonworkplace links are not.

Suggested Citation

  • Nancy H. Chau & Yu Qin & Weiwen Zhang, 2024. "Leader Networks and Interjurisdictional Contracting in Land Conversion Quotas," Land Economics, University of Wisconsin Press, vol. 100(3), pages 568-587.
    • Handle: RePEc:uwp:landec:v:100:y:2024:i:3:p:568-587
    Note: DOI: https://doi.org/10.3368/le.100.3.040120-0046R1
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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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