Economics at your fingertips  

The endowment effect accompanying villagers' withdrawal from rural homesteads: Field evidence from Chengdu, China

Runqiu Liu, Jian Jiang, Chao Yu, Jesse Rodenbiker and Yongmu Jiang

Land Use Policy, 2021, vol. 101, issue C

Abstract: The withdrawal from rural homesteads (WRH) refers to a mechanism to encourage villagers to withdraw from their vacant homesteads or give up their occupied homesteads (including the houses built on them) voluntarily and move into high-rise buildings with compensation. WRH aims to address inefficient utilization of rural land in China. However, the endowment effect, a behavioral tendency for villagers to value rural homesteads more highly when they own them relative to when they do not, may affect the process of implementing WRH policy. Based on survey data from 878 villagers in Chengdu, Sichuan Province, this paper estimates endowment effects for different types of villagers whose rights to their rural homesteads could be withdrawn. It then makes an empirical analysis on the differences and influencing factors of villagers’ endowment effects related to WRH via a binary logistic model querying emotional attachment, property right status, and substitutability of rural homesteads. The results show 70.62 % of sampled villagers exhibit an intensive endowment effect after WRH. Meanwhile, as non-agricultural economic activities increase, villagers’ endowment effects intensify. In terms of influencing factors, emotional attachment and cognition of inheritance rights strengthen the degree of pain experienced by villagers when they withdraw from their rural homesteads, thereby enhancing endowment effects. Property certificates and cognition of disposal rights negatively affect villagers’ endowment effects. From the perspective of villagers’ differentiation, cognition of mortgage rights intensifies the feelings of security within rural homesteads for full-time agricultural households, thereby intensifying endowment effects. Substitutability of villagers' livelihood positively affects endowment effects in full-time agricultural households and negatively affects endowment effects in non-agricultural households. This paper concludes by discussing the land use policy implications of these findings.

Keywords: Endowment effect; Withdrawal from rural homesteads (WRH); Agrarian transition; Social differentiation; Occupational differentiation; Logistics regression (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.landusepol.2020.105107

Access Statistics for this article

Land Use Policy is currently edited by Jaap Zevenbergen

More articles in Land Use Policy from Elsevier
Bibliographic data for series maintained by Joice Jiang ().

Page updated 2023-05-18
Handle: RePEc:eee:lauspo:v:101:y:2021:i:c:s0264837719323178