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

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  • 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.

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  • 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
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    References listed on IDEAS

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    Cited by:

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    2. Ying Liu & Rongrong Zhang & Ming Li & Chunshan Zhou, 2020. "What Factors Influence Rural-To-Urban Migrant Peasants to Rent out Their Household Farmland? Evidence from China’s Pearl River Delta," Land, MDPI, vol. 9(11), pages 1-19, October.
    3. Geng, Jinqiang & Huo, Qingqing & Jia, Shanshan, 2023. "Parasitic Behavior and Separation Countermeasures in Large-scale Farming: Insights from Shijiazhuang, China," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(4), October.
    4. Yan, Jinming & Yang, Yumeng & Xia, Fangzhou, 2021. "Subjective land ownership and the endowment effect in land markets: A case study of the farmland “three rights separation” reform in China," Land Use Policy, Elsevier, vol. 101(C).
    5. Qian, Chen & Li, Fan & Antonides, Gerrit & Heerink, Nico & Ma, Xianlei & Li, Xiande, 2020. "Effect of personality traits on smallholders’ land renting behavior: Theory and evidence from the North China Plain," China Economic Review, Elsevier, vol. 62(C).
    6. Lei Yan & Kairong Hong & Hui Li, 2021. "Transfer of Land Use Rights in Rural China and Farmers’ Utility: How to Select an Optimal Payment Mode of Land Increment Income," Land, MDPI, vol. 10(5), pages 1-22, April.
    7. Lei Yan & Xubin Lei & Kairong Hong & Hui Li & Mengyuan Chen, 2022. "Improving Farmer Willingness to Participate in the Transfer of Land Rights in Rural China: A Preference-Based Income Distribution Scheme," Land, MDPI, vol. 11(3), pages 1-22, March.

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