Inquiry into Transaction Theory and Demand for Policy-oriented Agricultural Insurance
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| Title | Inquiry into Transaction Theory and Demand for Policy-oriented Agricultural Insurance
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| Author | Hu Chao，Tao Jianping and Cheng Jing |
| Organization | Economic and Management College, Huazhong Agriculture University& Hubei Rural Development Research Center; Department of Economic and Management, Hubei Engineering University |
| Email | 1531946527@qq.com；jptao@mail.hzau.edu.cn；446944921@qq.com |
| Key Words | Policy-oriented Agricultural Insurance; Transaction Cost; Demand Law |
| Abstract | By inheriting Marshall’s theory of demand, this article derives a theory of demand for policy-oriented Agricultural Insurance. The informal risk-sharing arrangements among Chinese farmers have been ignored when the officials promulgated “Agricultural insurance regulations”. We have applied “1993-2006 Hubei Rural Tax and Fee Reform” material to verify the demand theory, and found a significant drop in the costs of informal arrangements. Considering high transaction costs incurred in establishing agricultural insurance system, the decision-maker should return to “economic goods” nature of insurance, while moderately integrate insurance system and the forgotten arrangements. |
| Serial Number | WP1144 |
| Time | 2017-01-03 |
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