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Burgess (2004) Asset Redistribution Table 4: Welfare Indicators in China and India, 1990 CHINA INDIA GNP per Capita 410 370 Daily calorie supply 2630 2238 Children 0-5 below -2 s.d. weight for age 17.4 63.9 Children 0-5 below -2 s.d. height for age 31.4 62.1 Infant mortality rate 31 97 Source: World Bank (1993), United Nations (1993), World Health Organisation (1997). Access to Land and Hunger but how does access to land affect hunger? previous studies of land reform have looked at effects on poverty (Besley- Burgess 2000) and productivity (Banerjee-Gertler-Ghatak 2001) this paper looks at the links between access to land and calorie consump- tion Agricultural household model – households make joint decisions over
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Unformatted text preview: consumption, production and labor input perfect markets – consumption decisions do not affect production deci-sions, production is independent of household preferences and income home produced and purchased calories are perfect substitutes Result 1: Under perfect markets land only has an effect on calorie consumption via its eect on income. ∂ x c ¯ A = x c y ∗ · y ∗ ¯ A when one or more market is incomplete then recursiveness breaks down – consumption variables determine production (e.g., due to transaction costs or thin markets) Development Economics, LSE Summer School 2007 89...
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