IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v21y2010i2p272-281.html
   My bibliography  Save this article

Permanent land-use rights and endowment insurance: Chinese evidence of the substitution effect

Author

Listed:
  • Yu, Ning
  • Shi, Qinghua
  • Jin, Hongtao

Abstract

This paper studies the substitution effect of permanent land-use rights on endowment insurance in China. We first explain the rationality using an overlapping-generations model with heterogeneous households possessing land-use rights or not, and find that economic agents profiting from land in the latter stage of their life tend to save less for retirement than their land-deprived counterparts. Empirical evidence from village-clustered Chinese survey data on rural households supports this finding, locating a significant negative effect of land on social and commercial endowment insurance purchase. Apart from the important policy implication of compensating land-deprived farmers with insurance, our theoretical and empirical models both yield unexpected informing findings.

Suggested Citation

  • Yu, Ning & Shi, Qinghua & Jin, Hongtao, 2010. "Permanent land-use rights and endowment insurance: Chinese evidence of the substitution effect," China Economic Review, Elsevier, vol. 21(2), pages 272-281, June.
  • Handle: RePEc:eee:chieco:v:21:y:2010:i:2:p:272-281
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043-951X(09)00119-9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ayse Imrohoroglu & Selahattin Imrohoroglu & Douglas H. Joines, 1999. "Social Security in an Overlapping Generations Economy with Land," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(3), pages 638-665, July.
    2. Feldstein, Martin, 1999. "Social security pension reform in China," China Economic Review, Elsevier, vol. 10(2), pages 99-107.
    3. Krusekopf, Charles C., 2002. "Diversity in land-tenure arrangements under the household responsibility system in China," China Economic Review, Elsevier, vol. 13(2-3), pages 297-312.
    4. Michael C. Farmer & Alan Randall, 1997. "Policies for Sustainability: Lessons from an Overlapping Generations Model," Land Economics, University of Wisconsin Press, vol. 73(4), pages 608-622.
    5. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467-467.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    7. Tao Yang, Dennis, 1997. "China's land arrangements and rural labor mobility," China Economic Review, Elsevier, vol. 8(2), pages 101-115.
    8. Feldstein, Martin, 1999. "Social Security Pension Reform in China," Scholarly Articles 2794835, Harvard University Department of Economics.
    9. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    10. Dong, Xiao-Yuan, 1996. "Two-tier land tenure system and sustained economic growth in post-1978 rural China," World Development, Elsevier, vol. 24(5), pages 915-928, May.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:21:y:2010:i:2:p:272-281. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/chieco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.