File2-page85 - mates which indicates the HRS affected the...

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Lin (1992) Property Rights With a Cobb-Douglas production function of the following form: Y it = A it Π 4 k = 1 X γ k kit where the productivity parameter A it depends on the institutional vari- ables. The equation to be estimated is the following: ln Y it = α i + t + β 1 HRS it + 2 GP it + 3 MP it + 4 NG it + 5 MC it + Σ k = 1 4 kX kit + ε it where i is a province-speciFc intercept and t is a year-speciFc intercept. Key Results - Comparing columns (1) and (5) of Table 5, where in the Column (1) the previous equation is estimated while in Column (5) the same equation is estimated dropping all explanatory variables except for the institutional ones, i.e., HRS it ; GP it and MP it , we see that: 1 is signiFcantly positive and roughly the same in both esti-
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Unformatted text preview: mates which indicates the HRS affected the production by aug-menting efFciency rather than through greater use of inputs – 2 and 3 are signiFcantly positive only if the inputs are dropped, so market and price reforms worked mainly through increasing input use – Output grew by 42% between 1978 and 1984 and of this, 42% is attributed to the HRS , 16% to price reform, 30% to a time trend and 12% remains unexplained Development Economics, LSE Summer School 2007 82...
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