[8].JCRR,”AnnualReports,”www.youxs.org”ToBeSettled.”Itisimpossiblet,however,:onesourcecountsallclericalerrorsinleasecontractsasillegal;,”AnnualReports,”www.youxs.org,”Implementation,”www.youxs.org(includingtenurerearrangements)amountedto41,994cases(thehighestnumberonrecord),butover80percentofth,ifseveralerrorswerefoundinonecontract,illiteratesand,ontheotherhand,didnotconsidertheseassubstantialanddisregardedthem.

[9].Chen,Records,www.youxs.org.

[10].Seeibid.,andJCRR,”AnnualReports,”www.youxs.org.

[11].JCRR,”AnnualReports,”www.youxs.org,(ibid.,www.youxs.org).

[12].,,

[13].TPLB,”Implementation,”www.youxs.org.

[14].SeeChen,Records,www.youxs.org,”AnnualReports,”www.youxs.org.

[15].SeeChengChen,AnApproachtoChinasLandReform(Taipei:ChengChungBookCo.,1951),www.youxs.org.

www.youxs.org

www.youxs.org.

Aswederiveherethehypothesisofincreasedfarmingintensity,foranalyticalconvenienceletussupposethatunderthereductionofthepermissiblerentalpercentage,,,andthemarginalproductsoftenantinputswillbelower,,themarginalproductsoftenantinputswillbelowerthantheassociatedmarginalopportunitycost.

Supposethemarket(unrestricted)rentalpercentageof70percent(r=www.youxs.org)isrestrictedbyregulationto40percent(

=www.youxs.org).Thelandownernowinthetruesensereceives40percent,r,,therefore,offertomitmorefarminginputs?Andifso,willthisleadtomoreefficientresourceuse?

Theunrestrictedmarketrentalpercentage,recall,isreachedwhenthemarginaltenant(nonland)costoffarmingequalsthemarginalproductoftenant(nonland),,suppose,withtherestricted

=www.youxs.org$10offarminginput,thecorrespondinggaininproductwillbelessthan$www.youxs.org$6withthereducedrentalpercentage(whichisobtainedbyusingtheamountoflessthan$10times1—

).Indeed,thetenantwouldnotvoluntarilyoffertomitadditionalfarminginputtotheareaoflandhealreadyisusingevenifthelandweregiventohim.

Bythesamereasoning,(constraint),however,,supposebeforetherestrictionthetotalyieldis$200,andwithr—www.youxs.org$60,

=www.youxs.org$120,or$,inordertokeeporgetlandwilloffertomitanadditionalfarmingcostofatleast$www.youxs.org$60,the$60—say$www.youxs.org$40theownerwillreceive$40x

,or$16,andthetenantwillreceive$40x(1-

),or$www.youxs.org$24isanamountoverhisalternativeearning,whichtheownercanagaininducethetenanttoinvestinfarming.