Research Fellow Kaixing Huang Publishes Article in the Journal of the Association of Environmental and Resource Economists

Release date：2023/09/14　　Source： CCAP

In September 2023, Huang Kaixing, researcher of CCAP Peking University and doctoral supervisor of School of Advanced Agriculture, published a research paper titled "Positive Rainfall Shocks, Overoptimism, and Agricultural Inefficiency in China" online with co-authors as the first author and corresponding author in the Journal of the Association of Environmental and Resource Economists (JAERE), an internationally recognized journal in the field of resource and environmental economics. The research paper entitled "Positive Rainfall Shocks, Overoptimism, and Agricultural Inefficiency in China" was published online in the international academic journal Journal of the Association of Environmental and Resource Economists (JAERE), which is recognized as one of the top international journals in the field of resource and environmental economics. JAERE is recognized as one of the top international journals in the field of resource and environmental economics and is located in SSCI Economics Q1 (12/373) with an impact factor of 5.167.

The main contents of the paper are as follows: This study identifies overoptimism of farmers as an important cause of factor misallocation and inefficiency in agriculture. Annual deviation of rainfall from the local normal is exogenous, unanticipated, and transitory, but we find that farmers substantially adjust labor and land allocation in response to a lagged positive rainfall shock. By examining the response of more than 10,000 farmers in China over 11 years, we show that a lagged positive rainfall shock significantly reallocates labor from high-income off-farm work to low-income farm work, reallocates farmland from high-productivity farmers to low-productivity farmers, and reduces the average rural income by 8.1 percent. We also found that these effects are primarily driven by the irrational responses of low-productivity farmers and that farms with good irrigation conditions are generally not damaged.

Dr. Huang's research interests include environmental economics, agricultural economics, population and economic growth, etc. His papers have been published in more than 20 journals, including JAERE, JEEM, Journal of Economic Surveys, Oxford Economic Papers, and Journal of Agricultural Economics. His papers have been published in JAERE, JEEM, Journal of Economic Surveys, Oxford Economic Papers, Journal of Agricultural Economics, and more than 20 journals.

Cited Sources:  Kaixing Huang，Jingyuan Guo，Da Zhao. 2023. Positive Rainfall Shocks, Overoptimism, and Agricultural Inefficiency in China，Journal of the Association of Environmental and Resource Economists (2023)，

DOI: https://doi.org/10.1086/727761.

Link： https://www.journals.uchicago.edu/doi/epdf/10.1086/727761