The Relationship of Government Agricultural Public Goods Investment and Rural Households' Input

This paper modified the classic household utility model by introduce two new variables, which were government agricultural public investment and rural households' farmland input. It analyzed the relationship of government agricultural public investment and rural households' investment in recent 15 years. The conclusion is that there is a Long-run equilibrium relationship between government agricultural public investment and rural households' investment; government agricultural public investment drive the rural households' farmland input; Urbanization caused huge gap between marginal benefit of agricultural production and non-agricultural and lower efficiency of farm land use. As a result government should increase the agricultural public investment to drive rural households' farmland input, and increase the output efficiency of farmland and ensure national food security.