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

Ning Yu, Qinghua Shi and Hongtao Jin

China Economic Review, 2010, vol. 21, issue 2, 272-281

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.

Keywords: Land-use; rights; Endowment; insurance; Overlapping-generations; model; China (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:21:y:2010:i:2:p:272-281

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