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The institutional change under lobbying and the
distribution of power ―The case analysis on the changes in
land ownership system in China in 1978 |
| SUN Shengmin |
| Center for Economic Research, Shandong University, Jinan 250100, China |
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Abstract In this paper, we develop a model of institutional change of land property right in China, which include the influences of lobbying and the political power division in 1978. The model illustrates how extra gains are produced under different institutions and how lobbying and political power division can affect the change. It is clear that the institutional innovation has something to do with the leaders’ legal income, the cost of institutional change and the conversion rate. Given the pattern of leader’s power division, it is the best way for the people in rural areas to change their institutional framework, and it is efficient to mix local and central governmental policies. And lobbying and leading power division can affect the direction and the course of institutional changes that would lead different result among different areas.
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Issue Date: 05 September 2008
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