Premium
New Compensation Standard for Land Expropriation in China
Author(s) -
Zou Xiuqing,
Oskam Arie J.
Publication year - 2007
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2007.00087.x
Subject(s) - expropriation , compensation (psychology) , negotiation , transaction cost , china , bargaining power , database transaction , market economy , property rights , microeconomics , economics , economic system , business , value (mathematics) , industrial organization , law , psychology , programming language , machine learning , political science , psychoanalysis , computer science
This paper explores a new compensation standard for use in agricultural land conversion in China during the land‐expropriation process, based on the market value definition. Assuming identical bargaining power between the buyer and the seller, efficient and equitable compensation is obtained through a market transaction and bargaining negotiation mechanism, under the assumpation of a perfect market. From the state‐of‐the‐art viewpoint of land appraising, a practical approximation of the theoretical optimal compensation will provide an effective solution for China, under the current collective‐owned land property rights structure.