Local elections and consumption insurance : evidence from Chinese villages
AbstractWhile the literature on consumption insurance is growing fast, little research has been conducted on how rural consumption insurance is affected by democracy. In this paper the authors examine how consumption insurance of Chinese rural residents is affected if the local leader is democratically elected. Exploring a unique panel data set of 1,400 households from 1987 to 2002, they find that consumption insurance is more complete when the households are in villages with elected village leaders. Furthermore, democracy improves consumption insurance only for the poor and middle-income farmers, but not for the rich. These findings underline the importance of democratic governance for ensuring better rural consumption insurance and poverty reduction.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4205.
Date of creation: 01 Apr 2007
Date of revision:
Rural Poverty Reduction; Consumption; Inequality; Services&Transfers to Poor; Economic Theory&Research;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-28 (All new papers)
- NEP-CNA-2007-04-28 (China)
- NEP-DEV-2007-04-28 (Development)
- NEP-IAS-2007-04-28 (Insurance Economics)
- NEP-POL-2007-04-28 (Positive Political Economics)
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- Yang Yao & Nancy Qia & Monica Martinez Bravo & Gerard Padro i Miquel, 2011.
"Do Local Elections in Non-Democracies Increase Accountability? Evidence from Rural China,"
- Monica Martinez-Bravo & Gerard Padró i Miquel & Nancy Qian & Yang Yao, 2011. "Do Local Elections in Non-Democracies Increase Accountability? Evidence from Rural China," NBER Working Papers 16948, National Bureau of Economic Research, Inc.
- Martinez-Bravo, Monica & Padró i Miquel, Gerard & Qian, Nancy & Yao, Yang, 2011. "Do Local Elections in Non-Democracies Increase Accountability? Evidence from Rural China," CEPR Discussion Papers 8368, C.E.P.R. Discussion Papers.
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