Local Elections and Consumption Insurance : Evidence from Chinese Villages

While the literature on consumption insurance is growing fast, little research has been conducted on how rural consumption insurance is affected by democracy. In this paper the authors examine how consumption insurance of Chinese rural residents is...

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Main Authors:	Gan, Li, Xu, Lixin Colin, Yao, Yang
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ADMINISTRATIVE COSTS AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE INCOME BUDGET CONSTRAINT CONSUMPTION GROWTH CONSUMPTION INSURANCE CONSUMPTION LEVELS CONSUMPTION SMOOTHING CREDIT MARKET CROSS SECTION UNIT DATA SET DECENTRALIZATION DEMAND FOR CONSUMPTION DETERMINANTS OF CONSUMPTION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC OUTCOMES ECONOMIC PERSPECTIVES ECONOMIC REVIEW EMPIRICAL ISSUE EMPIRICAL RESULTS EXPLANATORY POWER EXPLANATORY VARIABLE FARMERS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT REGULATIONS GROWTH EQUATION HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD CONTROLS HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SIZES IDIOSYNCRATIC SHOCKS IMPLICATIONS FOR CONSUMPTION INCOME INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME SHOCKS INCOME SMOOTHING INCOMES INFORMAL INSURANCE LEVELS OF CONSUMPTION MEASUREMENT ERRORS MEDIAN VOTER MEDIAN VOTER THEOREM MEDIAN VOTERS MIDDLE CLASS NEGATIVE EXTERNALITY 0 HYPOTHESIS OPTIMIZATION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POOR POOR FARMERS POSITIVE EFFECT POVERTY REDUCTION PUBLIC CHOICE PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS REDUCING POVERTY REDUCTION IN CONSUMPTION RISK AVERSION RISK SHARING RURAL RURAL AREAS RURAL CREDIT RURAL ECONOMY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL RESIDENTS SAVINGS SIGNIFICANCE LEVEL TAXATION TOTAL INCOME UTILITY FUNCTION VILLAGE LEADERS WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2007/04/7537736/local-elections-consumption-insurance-evidence-chinese-villages http://hdl.handle.net/10986/7064

id	okr-10986-7064
recordtype	oai_dc
spelling	okr-10986-70642021-04-23T14:02:33Z Local Elections and Consumption Insurance : Evidence from Chinese Villages Gan, Li Xu, Lixin Colin Yao, Yang ADMINISTRATIVE COSTS AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE INCOME BUDGET CONSTRAINT CONSUMPTION GROWTH CONSUMPTION INSURANCE CONSUMPTION LEVELS CONSUMPTION SMOOTHING CREDIT MARKET CROSS SECTION UNIT DATA SET DECENTRALIZATION DEMAND FOR CONSUMPTION DETERMINANTS OF CONSUMPTION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC OUTCOMES ECONOMIC PERSPECTIVES ECONOMIC REVIEW EMPIRICAL ISSUE EMPIRICAL RESULTS EXPLANATORY POWER EXPLANATORY VARIABLE FARMERS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT REGULATIONS GROWTH EQUATION HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD CONTROLS HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SIZES IDIOSYNCRATIC SHOCKS IMPLICATIONS FOR CONSUMPTION INCOME INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME SHOCKS INCOME SMOOTHING INCOMES INFORMAL INSURANCE LEVELS OF CONSUMPTION MEASUREMENT ERRORS MEDIAN VOTER MEDIAN VOTER THEOREM MEDIAN VOTERS MIDDLE CLASS NEGATIVE EXTERNALITY 0 HYPOTHESIS OPTIMIZATION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POOR POOR FARMERS POSITIVE EFFECT POVERTY REDUCTION PUBLIC CHOICE PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS REDUCING POVERTY REDUCTION IN CONSUMPTION RISK AVERSION RISK SHARING RURAL RURAL AREAS RURAL CREDIT RURAL ECONOMY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL RESIDENTS SAVINGS SIGNIFICANCE LEVEL TAXATION TOTAL INCOME UTILITY FUNCTION VILLAGE LEADERS WEALTH While the literature on consumption insurance is growing fast, little research has been conducted on how rural consumption insurance is affected by democracy. In this paper the authors examine how consumption insurance of Chinese rural residents is affected if the local leader is democratically elected. Exploring a unique panel data set of 1,400 households from 1987 to 2002, they find that consumption insurance is more complete when the households are in villages with elected village leaders. Furthermore, democracy improves consumption insurance only for the poor and middle-income farmers, but not for the rich. These findings underline the importance of democratic governance for ensuring better rural consumption insurance and poverty reduction. 2012-06-04T20:58:35Z 2012-06-04T20:58:35Z 2007-04 http://documents.worldbank.org/curated/en/2007/04/7537736/local-elections-consumption-insurance-evidence-chinese-villages http://hdl.handle.net/10986/7064 English Policy Research Working Paper; No. 4205 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ADMINISTRATIVE COSTS AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE INCOME BUDGET CONSTRAINT CONSUMPTION GROWTH CONSUMPTION INSURANCE CONSUMPTION LEVELS CONSUMPTION SMOOTHING CREDIT MARKET CROSS SECTION UNIT DATA SET DECENTRALIZATION DEMAND FOR CONSUMPTION DETERMINANTS OF CONSUMPTION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC OUTCOMES ECONOMIC PERSPECTIVES ECONOMIC REVIEW EMPIRICAL ISSUE EMPIRICAL RESULTS EXPLANATORY POWER EXPLANATORY VARIABLE FARMERS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT REGULATIONS GROWTH EQUATION HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD CONTROLS HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SIZES IDIOSYNCRATIC SHOCKS IMPLICATIONS FOR CONSUMPTION INCOME INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME SHOCKS INCOME SMOOTHING INCOMES INFORMAL INSURANCE LEVELS OF CONSUMPTION MEASUREMENT ERRORS MEDIAN VOTER MEDIAN VOTER THEOREM MEDIAN VOTERS MIDDLE CLASS NEGATIVE EXTERNALITY 0 HYPOTHESIS OPTIMIZATION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POOR POOR FARMERS POSITIVE EFFECT POVERTY REDUCTION PUBLIC CHOICE PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS REDUCING POVERTY REDUCTION IN CONSUMPTION RISK AVERSION RISK SHARING RURAL RURAL AREAS RURAL CREDIT RURAL ECONOMY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL RESIDENTS SAVINGS SIGNIFICANCE LEVEL TAXATION TOTAL INCOME UTILITY FUNCTION VILLAGE LEADERS WEALTH
spellingShingle	ADMINISTRATIVE COSTS AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE AVERAGE ANNUAL AVERAGE INCOME BUDGET CONSTRAINT CONSUMPTION GROWTH CONSUMPTION INSURANCE CONSUMPTION LEVELS CONSUMPTION SMOOTHING CREDIT MARKET CROSS SECTION UNIT DATA SET DECENTRALIZATION DEMAND FOR CONSUMPTION DETERMINANTS OF CONSUMPTION DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC EFFECTS ECONOMIC OUTCOMES ECONOMIC PERSPECTIVES ECONOMIC REVIEW EMPIRICAL ISSUE EMPIRICAL RESULTS EXPLANATORY POWER EXPLANATORY VARIABLE FARMERS FUNCTIONAL FORM FUTURE RESEARCH GDP GDP PER CAPITA GOVERNMENT REGULATIONS GROWTH EQUATION HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD CONTROLS HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD MEMBERS HOUSEHOLD SIZE HOUSEHOLD SIZES IDIOSYNCRATIC SHOCKS IMPLICATIONS FOR CONSUMPTION INCOME INCOME GROUPS INCOME GROWTH INCOME LEVEL INCOME SHOCKS INCOME SMOOTHING INCOMES INFORMAL INSURANCE LEVELS OF CONSUMPTION MEASUREMENT ERRORS MEDIAN VOTER MEDIAN VOTER THEOREM MEDIAN VOTERS MIDDLE CLASS NEGATIVE EXTERNALITY 0 HYPOTHESIS OPTIMIZATION POLICY IMPLICATIONS POLICY RESEARCH POLITICAL ECONOMY POOR POOR FARMERS POSITIVE EFFECT POVERTY REDUCTION PUBLIC CHOICE PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS REDUCING POVERTY REDUCTION IN CONSUMPTION RISK AVERSION RISK SHARING RURAL RURAL AREAS RURAL CREDIT RURAL ECONOMY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL RESIDENTS SAVINGS SIGNIFICANCE LEVEL TAXATION TOTAL INCOME UTILITY FUNCTION VILLAGE LEADERS WEALTH Gan, Li Xu, Lixin Colin Yao, Yang Local Elections and Consumption Insurance : Evidence from Chinese Villages
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper; No. 4205
description	While the literature on consumption insurance is growing fast, little research has been conducted on how rural consumption insurance is affected by democracy. In this paper the authors examine how consumption insurance of Chinese rural residents is affected if the local leader is democratically elected. Exploring a unique panel data set of 1,400 households from 1987 to 2002, they find that consumption insurance is more complete when the households are in villages with elected village leaders. Furthermore, democracy improves consumption insurance only for the poor and middle-income farmers, but not for the rich. These findings underline the importance of democratic governance for ensuring better rural consumption insurance and poverty reduction.
format	Publications & Research :: Policy Research Working Paper
author	Gan, Li Xu, Lixin Colin Yao, Yang
author_facet	Gan, Li Xu, Lixin Colin Yao, Yang
author_sort	Gan, Li
title	Local Elections and Consumption Insurance : Evidence from Chinese Villages
title_short	Local Elections and Consumption Insurance : Evidence from Chinese Villages
title_full	Local Elections and Consumption Insurance : Evidence from Chinese Villages
title_fullStr	Local Elections and Consumption Insurance : Evidence from Chinese Villages
title_full_unstemmed	Local Elections and Consumption Insurance : Evidence from Chinese Villages
title_sort	local elections and consumption insurance : evidence from chinese villages
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/04/7537736/local-elections-consumption-insurance-evidence-chinese-villages http://hdl.handle.net/10986/7064
_version_	1764401808884629504

Local Elections and Consumption Insurance : Evidence from Chinese Villages

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