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2011•RePEc: Research Papers in EconomicsOpen access

An Economic Analysis of Compensation for Rural Land Expropriation

Mingzhi Xu, Jiacheng Dai, Lu-xi Cao, Xu, Ming-Zhi, Dai, Jia-Cheng, Cao, Lu-Xi

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Abstract

To study which method is more effective in complete compensation and zero compensation for rural land expropriation, we use economic models to analyze whether the government is benevolent and which compensation method can achieve the social optimal level. The results show that both complete compensation and zero compensation will lead to over-investment of land owners, and consequently result in loss of social welfare.

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To study which method is more effective in complete compensation and zero compensation for rural land expropriation, we use economic models to analyze whether the government is benevolent and which compensation method can achieve the social optimal level. The results show that both complete compensation and zero compensation will lead to over-investment of land owners, and consequently result in loss of social welfare.

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Available abstract

To study which method is more effective in complete compensation and zero compensation for rural land expropriation, we use economic models to analyze whether the government is benevolent and which compensation method can achieve the social optimal level. The results show that both complete compensation and zero compensation will lead to over-investment of land owners, and consequently result in loss of social welfare.

Key concepts: Expropriation, Compensation (psychology), Agribusiness, Investment (military), Government (linguistics), Zero (linguistics), Business, Natural resource economics

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