Substitution and Complementarity:A Study of the Relationship Between Informal and Formal Risk Management Tools
Using the thematic survey data of rural insurance from the 2019 China Household Finance Survey(CHFS),this study empirically examines the relationship between informal and formal risk management tools.The research finds:famers have a significantly higher adoption rate of informal risk management tools compared to formal ones.Informal risk management tools exhibit a significant substitutive relationship with low coverage agricultural insurance and are not influenced by income levels,famers show a higher willingness to purchase high-coverage agricul-tural insurance.Informal risk management tools complement high-coverage agricultural insur-ance,and famers relying on loan relief have a higher willingness to purchase high-coverage agri-cultural insurance.Given this,we should focus on promoting agricultural insurance with low pro-tection levels to farmers who lack risk management ability.At the same time,we will gradually promote agricultural insurance with a high level of security to ensure the income of rural house-holds and safeguard national food security.
万方数据
维普
