Since the seminal work of Adam Smith, markets have been considered an efficient tool for co-ordinating the behaviour of economic agents. The basic characteristic of a market economy is that the complex system of interaction among individuals is not centrally coordinated. Under the assumption of...

The goal of this study is to assess householdsâ labor allocation in the wake of Chinaâs efforts to develop the rural labor market in a manner that is conductive to its transition to a market economy. Applying the agricultural household model as the theoretical framework, we help to understand...