Your misfortune is also mine: Land expropriation,property rights insecurity,and household behaviors in rural China

Using a unique nationwide survey of rural China, we examine the effects of property rights insecurity (PRI) created by undercompensated land requisitions (ULRs). To preclude the confounding impact of land losses on the behavior of displaced households, we adopt a novel approach comparing unaffected households in counties with massive ULRs and their counterparts in land-requisitioned counties without widespread ULRs, adjusted by their respective control group households in adjacent non-land-requisitioned counties. The group from counties with widespread ULRs exhibits significantly lower trust in local governments, employs risk-proof strategies to cope with perceived PRI, and experiences a decline in farming efficiency and household welfare.