Price Controls and the Economics of Institutions in China

The study of economic reforms in China is a fascinating subject from the standpoint of incentive theory, since the goal of the reformers is to encourage the Chinese economy to take off by giving free rein to market forces. Remaining problems are connected with the regulation of large public monopolies, the improvement of the fiscal system, and the development of the banking system. These problems are complex and difficult to resolve. In particular, there is no database which can be used to analyze the distortions associated with them or to evaluate the first steps of the reforms. This book therefore combines interviews with economists and politicians with theory and empirical analysis in order to deepen our understanding of the nature of some of the last obstacles to China’s economic development.