Improve market functioning in a developing economy

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1. In China, rural property is owned collectively by the village while being managed under long-term contracts by individual farmers. Why might this be a problem in terms of optimal land managment, use, and allocation?

2. How does peer lending used in microfinance help to solve the problem of adverse selection?

3. [Related to the Economics in Practice on p. 410] Find another example of the use of cell phones as a way to improve market functioning in a developing economy.

Reference no: EM131306533

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