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Academic Journal of Humanities & Social Sciences, 2019, 2(3); doi: 10.25236/AJHSS.040079.

Dynamic Research on Rural Land Transfer Based on Prospect Theory

Author(s)

Ling Jiang1, *, Zebin Xing2

Corresponding Author:
Ling Jiang
Affiliation(s)

1 School of Economics, Anhui University of Finance and Economics, Bengbu, Anhui, 233030, China
2 School of Finance, Anhui University of Finance and Economics, Bengbu, Anhui, 233030, China
*Corresponding author e-mail: jl567@sina.com.cn

Abstract

While rural land circulation promotes the scale of grain production, it also affects the changes in farmers' income in China. To this end, this paper analyzes rural land transfer behavior from the perspective of prospect theory, and considers the impact of farmers' psychological changes on land transfer, and further analyzes the efficiency of rural land transfer in China. According to prospect theory, we can recognize that the value of farmers' land transfer is not expected to be high. Agricultural income is relatively low, agricultural production has seasonal characteristics, and the opportunity cost of farmers' leisure is high. Therefore, the peasant rationality makes the choice behavior of the peasants move between 0 and 1 subjective probability of transferring land, which also explains the reason why most farmers in China adopt the concurrent business.

Keywords

Grain price, The transfer of the rural land, Prospect theory

Cite This Paper

Ling Jiang, Zebin Xing. Dynamic Research on Rural Land Transfer Based on Prospect Theory. Academic Journal of Humanities & Social Sciences (2019) Vol. 2, Issue 3: 108-115. https://doi.org/10.25236/AJHSS.040079.

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