household production unit and the introduction of the commune system.
A commune was usually organised with three levels: commune, brigade
and production team. The production team, consisting of about thirty
households, served as the basic unit of production and accounting. Land
and other production means were pooled and all production activities
were determined by the team leader and carried out by collective labour.
Distinguished from household heads, team leaders behaved differently.
Collectivisation of agricultural production significantly reduced the
transaction costs of plan enforcement.