Article

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

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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this paper estimates endowment effects for different types of villagers whose rights to their rural homesteads could be withdrawn.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.

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... Based on the in-field statistics, the endowment effect can be seen as a key factor for market inefficiency and therefore policymakers and stakeholders should aim to minimise the impact of the endowment effect to achieve higher efficiency. In their research, Liu and colleagues examined the effects of the endowment effect within the context of the policy that encouraged villagers to voluntarily give up their rural homesteads and relocate to high-rise buildings in order to optimise the use of rural land resources [11]. The research aimed to shed light on the effectiveness of the policy in addressing land inefficiency. ...
... The research aimed to shed light on the effectiveness of the policy in addressing land inefficiency. According to the findings of the research by Liu et al., a significant majority (70.62%) of the surveyed villagers displayed a pronounced endowment effect following the policy enforcement for the withdrawal from rural homesteads (WRH) [11]. The endowment effect, under this context, refers to the behavioural inclination of individuals to assign a higher value to rural homesteads when they possess ownership compared to when they do not [11]. ...
... According to the findings of the research by Liu et al., a significant majority (70.62%) of the surveyed villagers displayed a pronounced endowment effect following the policy enforcement for the withdrawal from rural homesteads (WRH) [11]. The endowment effect, under this context, refers to the behavioural inclination of individuals to assign a higher value to rural homesteads when they possess ownership compared to when they do not [11]. Liu and colleagues' research revealed numerous elements influencing the endowment effect in this particular context [11]. ...
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This essay explores the implications of the endowment effect in various fields including housing markets, environmental policies, and taxation. This essay clarifies the definition and importance of the endowment effect and inspected related literature on the topic of the endowment effect and the fields of application. In the housing markets, this phenomenon is examined from the perspective of the Chinese rural villager displacement programme. In this situation, the endowment effect is influenced significantly by attachment rooted in emotion, ownership of the property, and the replaceability of houses. In environmental policies, the endowment effect is found to result in disparate assessments of favourable outcomes and adverse consequences in the environment. This introduces the concept of the endowment factor as a tool for policymakers. In the realm of taxation, the endowment effect is discussed in relation to tax salience, influencing public perceptions and responses to tax policy changes. Mitigation strategies for the endowment effect such as vocational training, fair compensation, the use of agents, and providing accessible information are also discussed.
... In terms of the detailed data resource and application resources, the inquiry of 878 people in the Chengdu City, which is in the Sichuan Province, was discussed first [7], which tests endowment effects on various sorts of farmers whose rural homesteads may be lost. Then, it conducts an empirical analysis using a binary logistic model to probe emotional relationship, land-owning right situation as well as potential substitutability about rural homesteads which are used to evaluate diversity and vital elements about villagers' endowment effects which are associated with WRH. ...
... For villagers, rural homesteads are more than just a source of income. They also serve as a source of pride in one's family and a psychological anchor [7]. ...
... The endowment effects were also influenced by household income levels. At the same time, the endowment effects are stronger the more substitution effect there is [7]. ...
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To evaluate how the endowment effect be the obstacle in the agricultural and property market and to find key factors which have impact on endowment effect, this article re-defined what the endowment effect is in rural-land property market, which is mainly focus on how the decision-maker establish choices and evaluates the worth of the deals they hold. Then, this paper studies the phenomenon of price preference among supply and demand-side of farmland and property market in the application of Shaanxi province. Third, this paper exams the Chengdu's villagers voluntarily and compensation of the withdrawal from rural homesteads (WRH) with the obvious conflict between supplying and demanding of urban and agricultural building land resources. Based on the re-definition and main applications, this paper indicates that the key factors which affect the endowment effect includes emotional ties, degree of substitution of goods as well as products, income levels, price preferences on the demand sides as well as supply sides of the land market, perceived risk evaluation of future income situation, forecasted risk of the stability of the rural land property rights, the labour situation among various types of farmers, age, membership in cooperatives and whether there is a local intermarriage or not. This paper will also critically examine how endowment effect influence supply and demand relationships in the land and property markets, how the government might issue directives or create policies to support or discourage endowment effect in the farmland market and how to establish the innovation of "three rights of separation" in the land market. The potential remedies and suggestions are provided.
... Socioeconomic characteristics (e.g., age, education, farming type, income and living conditions), job considerations, the price of urban houses, economic compensation, and property rights status are more likely to be considered [8,9]. However, psychological elements are also emerging as key influencers on the withdrawal of farmers from homesteads, even though the current attention is centered exclusively on emotional attachment, psychological resilience and cognition [10][11][12]. Some scholars even believe that psychological factors are more significant to individual behaviour than demographic influences [13]. ...
... Differentiated initiatives suited to individual heterogeneity perception and preference are being required to increase farmers' incentives to participate in the withdrawal of residential land [10,11]. Undeniably, it is a risky choice for farmers to withdraw from rural homesteads. ...
... The foundation of this study focuses on the condition that farmers' rural homestead withdrawal decisions are based on the principles of being voluntary and compensated [10]. Most importantly, our study holds the opinion that farmers' willingness for WRH was affected by farmers' differentiation, and the differing psychological aspects deserve to be explored. ...
Article
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Government-guided withdrawal from rural homesteads is a sustainable solution to the problem of vacant rural residential land. Nonetheless, few studies have considered the influence of risk perception and loss aversion on farmers' decisions to withdraw from rural homesteads, and even fewer have investigated the role of policy identity. Using fieldwork-collected primary data and a lottery-choice experiment from a reform pilot area of southwestern China, this study aimed to provide a new focus for risk perception and loss aversion in farmers' intention to withdraw from rural homesteads through policy identity. According to our findings, only 45.30 % are willing to withdraw from their homesteads. Farmers typically perceive two to three categories of risks among residence risk, livelihood risk, security risk, and policy risk. Only 29.28 % of respondents report a low level of loss aversion, with the remainder reporting a moderate or high level. More than half demonstrate a high level of policy identity. Most notably, after dealing with endogeneity, risk perception has a negative impact on farmers' intention to withdraw from rural homesteads, whereas loss aversion has a positive impact. Policy identity has a positive influence on farmers' intention, partially mediating the negative path of risk perception and entirely mediating the positive path of loss aversion. Robust concluding remarks advocate for the improvement of farmers’ policy identity based on heterogeneous characteristics of risk perception and loss aversion, as well as a more individualized consideration of land withdrawal options.
... Furthermore, the research on homestead withdrawal focuses on the farmers' intention and influencing factors, and current voluntary and compensation instruments of rural homestead withdrawal. Resource endowment [10], generation differences [11], and individual cognition [7,12] were observed as internal determinants of homestead withdrawal intention [13][14][15], while village committees [16], formal and informal institutions [17], social security system [5,18], external environment differences [2], and homestead situation [10,19] were regarded as external factors. The majority of research involves empirical studies based on underdeveloped areas, and few studies have been undertaken in developed areas. ...
... Furthermore, the research on homestead withdrawal focuses on the farmers' intention and influencing factors, and current voluntary and compensation instruments of rural homestead withdrawal. Resource endowment [10], generation differences [11], and individual cognition [7,12] were observed as internal determinants of homestead withdrawal intention [13][14][15], while village committees [16], formal and informal institutions [17], social security system [5,18], external environment differences [2], and homestead situation [10,19] were regarded as external factors. The majority of research involves empirical studies based on underdeveloped areas, and few studies have been undertaken in developed areas. ...
... It is not simply that the higher the livelihood capital, the stronger the behavioral intention. This result is in contradiction with the findings of numerous studies [10,54,55]. The reason may be that the farmers have, to a certain extent, accumulated higher livelihood capital in the study area where there is a higher level of socioeconomic development compared to other regions, hence their behavioral intention is influenced more by psychological factors. ...
Article
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In the process of rapid urbanization and industrialization, there is a significant gap between farmers’ participation and rural homestead reorganization for the more diversified external environment. Despite considerable research focused on homestead withdrawal, the transfer of rural residential land development rights has received comparatively little attention. To realize the optimal use of rural homesteads’ resources and reducing potential living risks, this paper conducted an empirical study on the impact of farmers’ livelihood capital on their behavioral intention of rural residential land development right transfer within Wujin District as an example by incorporating the concepts of livelihood capital and risk perception into the theory of planned behavior (TPB). The results of this research show that the increase in livelihood capital may reduce the level of risk perception. The livelihood capital influences farmers’ intentions towards rural residential land development right transfer through risk perception and individual cognition. Based on the findings of this study, it is suggested to diversify livelihood strategies and improve the quality of livelihood capital, in order to reduce the constraint impact of risk perception on farmers’ behavioral intention (BI).
... Yan et al. [33] explained how the clarity, integrity, and stability of land subjective ownership under the "separation of powers" system affect farmers' endowment effects. Liu et al. [34] verified the existence of the endowment effect by studying the emotional attachment, property status, and substitutability of rural homesteads. ...
... Research shows that there are many factors affecting the endowment effect. Firstly, for farmers on the supply side (i.e., farmland renters), the subjective psychological dependence on land, including strong, long-term experiences [31], emotional cognition [20], and emotional attachment [34,35] is one of the causes of the endowment effect; secondly, the Land 2022, 11, 2053 4 of 21 objective dependence of "people and land", including social security functions [36,37], legal empowerment [30], etc., is a factor; thirdly, the substitutability of income sources, etc., also affects the endowment effect [8,9,34,37]. ...
... Research shows that there are many factors affecting the endowment effect. Firstly, for farmers on the supply side (i.e., farmland renters), the subjective psychological dependence on land, including strong, long-term experiences [31], emotional cognition [20], and emotional attachment [34,35] is one of the causes of the endowment effect; secondly, the Land 2022, 11, 2053 4 of 21 objective dependence of "people and land", including social security functions [36,37], legal empowerment [30], etc., is a factor; thirdly, the substitutability of income sources, etc., also affects the endowment effect [8,9,34,37]. ...
Article
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For a long time, the transference of land-contracting management rights was hindered by the unwillingness of farmers and inefficient use of farmland. The endowment effect is prevalent for farmers and is the main reason for the inhibited flow of farmland. However, recent studies have evaluated the endowment effect by treating buyers and sellers as one subject, which cannot be applied to individual land transfer transactions. Therefore, this paper redefines the endowment effect of farmland management rights by introducing market price as a reference point to evaluate the level of the supply- and demand-side endowment effects. The supply-side endowment effect is the gap between sellers’ willingness to accept and the market rent; the demand-side endowment effect is the gap between the market rent and buyers’ willingness to pay. In the empirical study, two multiple regression models are designed to measure the respective factors affecting the supply and demand sides, employing farm household survey data in Shaanxi Province. The obtained results reveal that the agricultural land transfer in Shaanxi Province is at a normal proportional level, and the supply- and demand-side endowment effects in agricultural land transfer are prevalent. The dependence of people on goods and the substitutability of the goods significantly affect the endowment effect of supply-side farmers, while the perception of expected income, cost and risk impact the endowment effect of demand-side farmers. Based on this, some policy recommendations are proposed to offset the influence of the endowment effect, thus promoting the development of the farmland transfer market.
... Although the rural population is shrinking, the total area of homesteads continues to grow [4]. According to statistics, the rural population decreased from 790 million to 560 million between 1978 and 2018 [8]. In contrast, the total area of homesteads has increased by 14 million hectares from 1995 to 2014 [9]. ...
... BC refers to villagers' evaluation based on expected benefits if they participate in WRH policy. Yet, it is notable that the rural homestead is not only the basis for villagers to meet their housing needs but also an important living material and emotional attachment for villagers [8]. Generally speaking, the cost of urban living is higher than in rural areas. ...
... To verify the theoretical hypotheses, we needed observation variables to measure these latent variables. According to the relevant literature [7,8], we chose "Acceptable differences of living cost" (BC1), "Living environment improvement" (BC2), "Employment convenience" (BC3), and "Homestead appreciation" (BC4) to measure the BC as shown in Table 2. For EC, "The village committee's encouragement" (EC1), "The local government's encouragement" (EC2), and "Demonstration by friends and relatives" (EC3) were selected as the observation variables [7,39]. ...
Article
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The Chinese government encourages villagers to withdraw from rural homesteads and puts these homesteads into the land market to revitalize rural homestead resources and make up for the lack of new construction land. Unfortunately, the implementation of the withdrawal from rural homesteads (WRH) policy remains slow. To realize the effective promotion of WRH policy, exploring the impact of policy cognition (PC) on villagers’ WRH intentions has become the key to solving the above problems. Thus, field survey data on 280 villagers in 13 administrative villages in the Yangling Demonstration district of Shaanxi province were collected through a face-to-face household survey. In addition, combined with the extended theory of planned behavior (TPB), this study used the structural equation model (SEM) to empirically analyze the influence of PC on the intentions of villagers’ WRH. Our empirical results indicated that benefit cognition and difficulty cognition were the focus of the villagers and had positive and negative effects on the intention of WRH, respectively. Government behavior also played a positive role in villagers’ WRH intentions. Villagers would consider compensation standards, pay closer attention to improving the living environment and employment opportunities, and express individual intentions. We believe policymakers should systematically consider the various impacts of WRH policy on villagers and build the villagers’ participation system of WRH and cross-regional transaction system for WRH indicators. This paper further enriches the conceptual framework of PC, which may help us better understand villagers’ responses to relevant policy reforms.
... The design, implementation and findings are summarised below. Liu et al. (2021), Yan et al. (2021), and Feng et al. (2020) all explore the notion of endowment effect. The paper by Liu et al. (2021) addresses a significant issue in Chinese rural development, namely government attempts to deal with the so-called 'hollowed villages' problem by relocating village residents to new settlements, usually consisting of newly constructed high-rise apartment blocks. ...
... Liu et al. (2021), Yan et al. (2021), and Feng et al. (2020) all explore the notion of endowment effect. The paper by Liu et al. (2021) addresses a significant issue in Chinese rural development, namely government attempts to deal with the so-called 'hollowed villages' problem by relocating village residents to new settlements, usually consisting of newly constructed high-rise apartment blocks. The term 'hollowed villages' refers to the neglect and ultimate abandonment of rural dwellings when the population in the working age groups leaves to seek employment elsewhere (Gao et al., 2017), usually in the fast-growing major cities in eastern China. ...
... So, reconfiguring the settlement pattern is also part of attempts to use farmland more productively by reclaiming land formerly used for housing to add to the productive agricultural area. Liu et al. (2021) refer to government policy promoting withdrawal from rural homesteads, under which villagers are compensated for giving up their homes and moving to new apartment blocks. Their survey of villagers in Chengdu, Sichuan Province examines the impacts of the endowment effect and villagers' attachment to their homes. ...
Article
In this introduction to the themed issue, “Behavioural Land Use Policy Studies”, we firstly provide a brief review of the current state of behavioural studies in land use policy, followed by a discussion of behavioural biases that are most relevant to land use policymaking. Next, we summarise the seven papers included in this themed issue. The behavioural topics explored by these papers include endowment effect, prospect theory, nudge, trust, social norms, time preference, and loss aversion. Our review of the literature examines the role played by Land Use Policy in applications of behavioural insights in environmental studies in general and land use policy studies in particular. The papers included in this themed issue push this research frontier by using large survey datasets from the field, and by investigating some under-researched behavioural tools (e.g., nudge). We conclude by suggesting research gaps to be filled by future behavioural land use policy studies.
... There is already a substantial body of research on the impact of land transfers on farmers' income. Property rights theory suggests that unrestricted land transfer markets can facilitate the transfer of comparative advantages among farmers [5,6], allowing transferees and transferors to specialize in their respective advantageous occupations, maximizing production efficiency, and improving their income levels [7]. However, it is puzzling that many studies on land transfers and farmers' income do not unanimously agree on whether land transfers can create an income premium. ...
... (www.preprints.org) | NOT PEER-REVIEWED | Posted: 7 May 2024 doi:10.20944/preprints202405.0324.v15 ...
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The United Nations Sustainable Development Goals call for the eradication of poverty, and China has proposed the Rural Revitalization Strategy based on the achievements of its poverty alleviation efforts in 2020. As a vital component of this strategy, the impact of land transfer on farmers' income growth has become a hot topic in both theoretical and practical sectors. This paper utilizes data from the CFPS database for the years 2010-2018 to construct OLS regression models and a Heckman two-stage model to analyze the effects of land transfers on the incomes of different types and sources among farmers. The empirical results show: First, land transfers do promote income growth among farmers, but the effect is primarily positive for those transferring out land, with negligible impact on those acquiring land. Second, the impact of land transfers varies between different types of income for transferees and transferors. Wage income contributes up to 88.26% to the income growth of transferors, a significantly higher rate than the decrease in business income; however, the increase in business income for transferees does not offset the decline in wage income, leading to no significant change in overall income. Further sensitivity analysis using the Heckman two-stage model confirms the robustness of these findings. The conclusions of this study provide theoretical and empirical evidence to optimize land transfer policies, enhance participation in land transfers, and ultimately achieve the mission of rural revitalization.
... Once the household per capita net income level reaches a point where the potential income from alternative uses of that time exceeds the gains from transferring out rural residential land, farmers no longer consider transferring out. They gradually develop an emotional attachment to their rural residential land, considering it their "hometown" [27]. For farmers desiring to move to urban areas, they do not envision their future residence in rural areas. ...
... (4) Threshold variable: Considering the differences in household consumption levels, this study adopts household per capita net income as the threshold variable, which is represented by the ratio of annual net income to household population. (5) Control variables: Drawing from relevant literature [27,46,[51][52][53], control variables are selected from three aspects: individual characteristics of farmers, household characteristics, and village characteristics. Individual characteristics include variables such as gender, age, years of education, and health condition. ...
Article
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Promoting the transfer of rural residential land is paramount in enhancing the efficiency of its utilization. The willingness of farmers to transfer rural residential land is influenced by the number of permanent residents. Existing research has drawn different conclusions about the relationship between these two factors, but the differences have not been analyzed. This study is based on survey data collected from our field research in Deqing County, Zhejiang Province, and utilizes the Probit model and threshold effect model to investigate the role of per capita net income in the relationship between the number of permanent residents and the willingness to transfer rural residential land. The results indicate: (1) There is a non-linear impact of the number of permanent residents on the willingness of farmers who are willing to live in rural areas to transfer to their rural residential land with an income threshold. There is a non-linear impact of the number of permanent residents on the willingness of farmers who are willing to live in city areas to transfer out of their rural residential land, with two income thresholds. By comparing with the actual situation, the size and order of the thresholds are scientifically established. (2) The transfer of rural residential land can serve as a supplementary solution to individual household applications for rural residential land, addressing China’s historical legacy issues concerning rural residential land. Considering these findings, policymakers should first actively promote the reform of the rural residential land system while ensuring safeguards for farmers and then work to increase the value of rural residential land. Additionally, they should implement differentiated policies to promote rural residential land transfer. This study can provide a valuable reference for effectively revitalizing idle rural residential land.
... Several scholars have emphasized the effects of WRH policy characteristics like policies promotion and withdrawal compensation [22][23][24]. In addition, farmers' cognition characteristics including knowledge of the policy and cognition of property rights have been taken into consideration [25][26][27]. ...
... The regional distribution of sample households is shown in Table 1. [25], farmers' trust in village cadre, and farmers' trust in laws and policies [33]. According to China's current laws and policies, farmers only have the right of qualification and use to their homestead, but not the right of ownership, disposal, inheritance or mortgage in general rural areas. ...
Article
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Withdrawal from rural homesteads (WRH) in China is mainly conducted under the guidance of government and follows the principle of farmers’ voluntary participation, in which both formal and informal institutions play essential roles. However, few studies have systematically analyzed the institutional factors in WRH. By introducing both formal and informal institutions into the analysis framework, the aim of this study was to explore the impacts of formal and informal institutions on farmers’ behavior to WRH, and the interaction between formal and informal institution in different villages. Based on survey data from farmers in Jinzhai, China, this study adopted a binary probit model and factor analysis. (1) The study revealed that farmers’ cognition of homesteads property rights and their trust in village cadres are the key formal institutional factors affecting farmers’ behavior to WRH, and farmers’ social networks, reciprocal norms, and trust in villagers are the key informal institutional factors affecting farmers’ WRH; (2) Both formal and informal institutions promote farmers’ WRH, and informal institutions play a more important role. However, there is no interaction between formal and informal institutions in the whole sample. (3) Furthermore, the effect of formal and informal institutions on farmers’ WRH have the heterogeneity of village location: there is a complementary relationship between formal and informal institutions in farmers’ WRH for villages with a medium proximity to the county seat, and a substitution relationship for villages far away from the county seat. Finally, this study discusses the implications of these findings on the new round of WRH policy.
... Referring to existing studies [27,[44][45][46][47][48], control variables include the following three parts: (1) individual characteristics, including gender, age, and education level; (2) family characteristics, including the number of family members, annual income of the family, whether it is a pure farmer, and whether it has a house in urban areas; (3) cognition of the ownership of homestead, including cognition of homestead ownership and the disposal right of homestead. It has been reported that gender (male), education, family income, and having a house in an urban area positively affect farmers' willingness to participate in homestead withdrawal, whereas age, number of family members, and being a pure farmer have a negative effect. ...
... Farmers with good education, fewer family members, and houses in urban areas are more likely to be willing to withdraw. The influence directions of other control variables are in line with expectations [44,46,60]. ...
Article
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The external environment has an important impact on farmers’ willingness to withdraw from rural homesteads. Based on the data from 392 farmers in Wuhan and Suizhou City from July to November 2021, we explored the significant role that the external environment played in farmers’ willingness to withdraw from rural homesteads. The empirical results, according to the binary Logit model, showed that the number of homesteads, location, and economy positively affect farmers’ intention to withdraw from their rural homesteads, and the effect in turn decreases. Famers in a village with no tourism resources are more likely to be willing to withdraw from their homesteads. Based on the empirical findings, this paper finally proposed that local governments should adopt a targeted policy to encourage farmers to orderly withdraw from their rural homesteads.
... Prioritizing the protection of cultivated land, the central government of China implements the construction land quota (CLQ) system, strictly restricting the annual distribution of the quota of construction land for local governments [1]. And the central government stipulates that urban cultivated land can only be converted to urban construction land (CL) within the quota [2]. However, the annual allocation quota of the central government is far from enough, which is not conducive to urban construction and economic development [3]. ...
Article
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Reasonable pricing of construction land quota (CLQ) and construction land (CL) is conducive to improving the enthusiasm for farmers’ land reclamation to generate more quotas. Existing literature points out that the current pricing mechanism based on the quota reclamation cost of construction land is not sufficient to protect the rights and interests of farmers in the process of withdrawing from homestead land. However, they have not conducted in-depth research on the quota pricing mechanism based on the characteristic value of the quota. This study constructs a two-stage sequential first-price auction (SFPA) behavioural model with regret, and studies the effect of regret on the CLQ and CL bidding price. Through theoretical and numerical analysis, we found that developers’ regret for quota winning and land failure decreased the quota bidding price and farmers’ income. By contrast, developers’ regret for quota failure and land winning will increase the quota bidding price and farmers’ income. The quota bidding price and farmer income with location selection are higher than those without selection. The quota bidding price and farmer income with location selection decrease as the number of developers increases. Therefore, the optimal decision of the government is to make use of the quota loser’s regret in the first stage by revealing the highest price of the quota, and to make use of the land winner’s regret in the second stage by revealing the second highest price of the land, thereby improve the supply of the quota and farmers’ income. The government provides developers with the location selection to further increase the quota bidding price and farmers’ income. Our new theoretical model is suitable for pricing CLQ and CL by effectively revealing developers’ private information.
... The endowment effect refers to the tendency to assign a higher value to an object if is owned; ownership leads to attachment to objects. This phenomenon has implications for behavioural economics and decision-making (Liu et al. 2021). In conclusion, the session focused on issues and points that may arise for decision-making for specific groups in hopes of best understanding and consideration of how to model evacuation that can consider the potential diversity of evacuees. ...
Technical Report
A significant portion of Aotearoa New Zealand’s population is vulnerable to tsunami. To improve evacuation modelling and planning, this study explores the complexities of decision-making for tsunami evacuation. As an exploratory study, four expert elicitation workshops were held to brainstorm key factors influencing evacuation behaviour. Insights from the workshop reveal the complexity of decision-making, with multiple factors overlapping and potentially influencing each other. The factors identified can be broadly grouped into four categories. These include: (1) Individual factors: personal experiences, knowledge, health, mobility and other factors can shape evacuation choices. (2) Social context and influence: social norms, family dynamics and other influences can significantly impact evacuation decisions. (3) Information factors: Clarity, timeliness and comprehensiveness of information is crucial for effective evacuation. (4) External and location-based factors such as time of day, weather, familiarity with surroundings and damage to infrastructure can also influence evacuation strategies. These findings highlight the potential to integrate these factors to improve agent-based modelling to reflect actual decision-making processes. In turn, the models can improve evacuation planning and public education. The multi-faceted factors can be progressively integrated into tsunami evacuation modelling as research progresses. Models that integrate the decision-making factors identified in this study can be a valuable tool for enhancing tsunami planning for coastal communities in Aotearoa New Zealand.
... When determining the scope of resettlement compensation for the PWRH, it is essential to consider not only the houses and ancillary facilities on the homestead but also the income value derived from the usage rights of the homestead. Secondly, elevating the compensation standard is more likely to encourage farmers to relinquish their homesteads [69]. The withdrawal compensation criteria should be scientifically devised by referencing elements such as land acquisition prices in the district. ...
Article
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In recent years, the paid withdrawal of rural homesteads has become a widely discussed topic within the academic community. However, from the perspective of protecting farmers’ rights and interests, literature exploring the impact of this policy’s implementation remains scarce. As the reform of the separation of the three rights of the homestead deepens, disputes related to paid withdrawal of homesteads have escalated rapidly. This study aims to highlight the importance of protecting farmers’ rights and interests, seeking to enhance their property rights and revitalize unused rural resources. Employing a case study methodology, this study systematically examines the issue of farmers’ rights and interests protection during homestead withdrawal. This analysis is based on the survey, collection, and evaluation of 324 judicial cases. The findings reveal the following: (1) Disputes involving paid withdrawal of homesteads encompass the entire withdrawal process, with the majority of conflicts arising during the withdrawal stage. (2) Prior to withdrawal, farmers express heightened concern regarding their political rights, particularly the right to be informed and to participate in withdrawal decisions. (3) During the withdrawal process, farmers prioritize resettlement and compensation rights. Additionally, novel issues such as the allocation of withdrawal compensation surface after farmers receive resettlement and compensation benefits. (4) After withdrawal, farmers anticipate more suitable “alternative” social rights and remedies. Based on these findings, this study presents policy recommendations for realizing farmers’ rights and interests in the context of paid withdrawal of rural homesteads. These suggestions include consistently respecting farmers’ autonomy and preserving their political rights throughout the withdrawal procedure. During the withdrawal stage, emphasis should be placed on the comprehensive value of resettlement compensation, encompassing both the residential and social security aspects of rural homesteads. Post-withdrawal, farmers’ social rights and the development rights of their homesteads ought to be fully guaranteed, ensuring a harmonious balance between farmers’ immediate and long-term interests. Furthermore, optimizing the dispute resolution mechanism stands as a pivotal aspect of safeguarding farmers’ rights and interests through legal recourse.
... However, legal disputes still exist regarding the rights of homesteads, and the property functions of homesteads are difficult to reflect. At the same time, the residential security function of the homestead provides psychological comfort to the migrant population [25], which inhibits their tendency to become citizens to a certain extent. Of course, other scholars hold opposing opinions. ...
Article
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Promoting the social integration of rural migrants is key to improving the mechanism of rural-urban integration and development. This study utilizes the 2017 China Migrants Dynamic Survey and matched urban macro data to systematically explore the impact of homesteads on the social integration of rural migrants. Research has shown that social integration of rural migrants will be inhibited if they own homesteads. Simultaneously, the degree of inhibition varies according to the individual characteristics of rural migrants, the region to which they belong, and other factors. Specifically, when rural migrants aged 18 to 50 own homesteads, their degree of social integration into the cities they move into will be low. At the same time, for rural migrants in the central region, homestead ownership will not affect their degree of social integration. In addition, the mechanism analysis shows that increased housing expenditure inhibits rural migrants’ willingness to integrate. Meanwhile, owning contracted land and owning a house in the city also affect the degree of social integration of rural migrants to a certain extent. The findings of this study can broaden research on the effects of land on the free movement of population factors. In the meantime, it provides theoretical references for improving the level of social integration of migrants, enhancing people’s well-being, and improving the mechanism of urban-rural integration and development.
... Cultural Forces underscore the indirect impact of non-material elements, such as practices, rules, activities, and beliefs on individual cognitive processes. Related researches suggest that factors like local attachment [26], individual herd mentality in rural communities [27], concern for social reputation [28], and formal or informal institutions [29] can significantly influence individual cognition. Within the cognitive framework of paying for Homestead Use, an amplified understanding among farmers regarding the security function of homesteads, their empathy towards disadvantaged groups, and the existence of land plots may foster the belief that the reform towards Paid Homestead Use would disrupt their time-honoured practice of utilizing ancestral homes without fiscal obligation. ...
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Aimed at advancing the reform of the Paid Use of Residential Land, this study investigates the willingness to pay among farmers and its underlying factors. Based on a Logistic Regression analysis of a micro-survey of 450 pieces of data from the Sichuan Province in 2023, we evaluated the effects of three factors, namely individual, regional and cultural forces. Further, Random Forest analysis and SHAP value interpretation refined our insights into these effects. Firstly, the research reveals a significant willingness to pay, with 83.6% of sample farmers being ready to participate in the reform, and 53.1% of them preferring online payment (the funds are mostly expected to be used for village infrastructure improvements). Secondly, the study implies that Individual Force is the most impactful factor, followed by regional and cultural forces. Thirdly, the three factors show different effects on farmers’ willingness to pay from different income groups, i.e., villagers with poorer infrastructure and lower clarity of homestead policy systems tend to be against the reform, whereas farmers with strong urban identity and collective pride support it. Based on these findings, efforts should be made to increase the publicity of Paid Use of Residential Land. Moreover, we should clarify the reform policies, accelerate the development of the online payment platform, use the funds for village infrastructure improvements, and advocate for care-based fee measures for disadvantaged groups.
... Differences in geographic areas or numbers of non-farm employment may modify the agricultural factor allocation behavior of rural migrant workers, consequently influencing farmland abandonment. Second, although existing research on WRH has yielded numerous insightful findings on the rural human-land relationship [27], the structure and function of rural homesteads [28], and influencing factors of the WRH [19,20,29,30], there remains a notable gap in addressing the withdrawal and transformation of rural homesteads, particularly in examining the interconnection between the withdrawal and transformation of rural homesteads and farmland abandonment in rural households. Considering widespread non-farm employment, this study employs Heckman's two-stage model and a moderating effect model to explore the relationship between non-farm employment, WRH, and farmland abandonment using data from urban resettled households in Shaanxi, China. ...
Article
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The de-agrarianisation of the labor force in the poverty alleviation resettlement (PAR) inevitably influences households’ farmland management and farmland abandonment in the relocated areas. Drawing on survey data from 1079 households in Shaanxi, China, this study uses the Heckman two-stage model to empirically examine the relationship between non-farm employment and farmland abandonment in relocated areas. Additionally, it explores heterogeneity by considering the quantity and spatial distribution of non-farm employment, as well as the moderating effect of the withdrawal of rural homesteads (WRH). The results show that: (1) non-farm employment significantly promotes both behavioral and scale of farmland abandonment, with the magnitude of this impact varying based on the quantity of non-farm employment; (2) Heterogeneity analyses show that areas with non-farm employment exert a noteworthy positive effect on farmland abandonment. On average, farmers engaged in non-farm employment outside the county (NEO) exhibit a higher marginal effect on both behavioral and scale aspects of farmland abandonment compared to those engaged in non-farm employment within the county (NEI). Furthermore, only when the number of NEI reaches 3 does the probability and scale of farmland abandonment surpass those of NEO; (3) Mechanism analysis sheds light on the role of WRH, indicating that the cultivation of land in WRH weakens the promotion of farmland abandonment by non-farm employment, particularly in the NEI group. Conversely, the duration of WRH strengthens the contributions of non-farm employment to farmland abandonment, and this effect is concentrated in the NEO group. These findings underscore the importance of actively cultivating and introducing new types of agricultural management entities, promoting the moderate-scale operation of farmland, and encouraging the recultivation of withdrawn rural homesteads as strategies to curb farmland abandonment.
... In addition to the real economic costs of rural-urban transition and compensatory equity, it is necessary to consider psychological violence stemming from the near total transformation of rural ways of life. As research shows, village residents often experience severe psychological stresses when leaving the security of their land and homes (Chuang, 2015) because they value rural land and housing as a personally owned asset (Liu et al., 2021). Forced migration into resettlement complexes transforms rural peoples' daily lives and socio-economic relations to land, labor and housing. ...
Chapter
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This chapter demonstrates how urban-rural conservation planning facilitates the territorialization of peri-urban land by municipal governments. I draw on a political ecology framework to detail what I call ‘ecological territorialization’. Ecological territorialization, in municipal regions, entails urban-rural conservation planning practices, multi-functional land zoning, and state-private partnerships, which are crucial to extending municipal power over rural land and populations. These processes spur myriad and uneven socio-economic trajectories for peri-urban ecological migrants who undergo uneven resettlement processes and livelihood transitions. In contemporary China, urban-rural conservation planning is key to producing frontiers of land-based accumulation and extending local state control across the peri-urban fringe. As ecological territorialization extends the reach of the local state, it simultaneously reorients rural people’s relationships to land, labor, and housing in ways contingent on spatiotemporal politics of land and housing valuation, compensation, and rural social organization.
... Second, a dual-track real property system (ownership by collectives but use rights for individuals) ensures one piece of residential land for one rural household, which can obtain and use land free of charge but is prohibited from land transfers, leases, mortgages, and commercial development (Liu & Zhang, 2020;Liu et al., 2021). This restriction limits the utilization of rural homesteads. ...
Article
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This empirical study explores the factors influencing farmers’ decisions to withdraw from homesteads with compensation in the Chengdu–Chongqing area. Based on survey data from rural households, a structural equation model was constructed to investigate the relationships between individual characteristics of farmers, household characteristics, and the characteristics of farmers’ homesteads and their impact on farmers’ employment, life, and income. The results indicate that household characteristics influence farmers’ willingness to quit homestead with compensation, significantly impacting the proportion of non-agricultural employment, stability of non-agricultural employment, agricultural income, and per capita annual income. Furthermore, higher education levels, younger age, and a fondness for urban life also influence farmers’ willingness to withdraw from homesteads. The study highlights the importance of reasonable compensation calculation methods and modes in promoting homestead withdrawal. The findings offer valuable insights for policymakers in designing more effective compensation programs and other policies to promote sustainable rural development in the Chengdu–Chongqing area. This study underscores the importance of technology transfer in rural development and highlights the potential of homestead withdrawal policies as a form of technology transfer. The findings have significant theoretical and managerial implications for policymakers to design more effective compensation programs and other policies promoting sustainable rural development in the Chengdu–Chongqing area.
... Like many other countries, China's reform and opening-up in the late 1970s sparked rapid urbanization and industrialization, resulting in a significant migration of rural populations to cities [6]. According to statistics, the rural population dwindled from 790 million to 560 million between 1978 and 2018 [7]. In stark contrast, the total area of homesteads ballooned by 14 million hectares from 1995 to 2014 [8]. ...
Article
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Population aging presents a significant global challenge. In China, the aging of the rural population coincides with inefficient rural homestead utilization. While the Chinese government has enacted policies to address this, their impact remains limited. Utilizing survey data from 403 rural families in Shenyang, Liaoning Province, China, this study applies the binary Logit and mediating effect models to analyze the impact of rural family population aging on farmers’ willingness to withdraw from homesteads with compensation and their compensation preference. Key findings include: (1) Family population aging intensifies farmers’ willingness to withdraw from homesteads, with a stronger preference for non-monetary compensation as aging increases. (2) Regarding the willingness to withdraw with compensation, farmers’ cognition of homestead security value masks the effect by 4.71%, while asset value cognition has no mediating effect. (3) With regard to promoting non-monetary compensation choices, farmers’ homestead asset value cognition fully mediates at 16.01%, but security value cognition is without mediating effect. Based on these findings, it is recommended that the government crafts tailored homestead withdrawal policies considering farmers’ family age structure. Further, efforts should aim at refining farmers’ understanding of homestead values, promoting a blend of non-monetary and monetary compensations.
... For instance, anecdotal evidence indicates that villagers from less-developed counties with limited education can neither afford the expenditure nor make a living in cities and naturally unwilling to withdraw from rural homesteads (Chen et al., 2017;Fan & Zhang, 2019). In this sense, government compensation proves to be important in villagers' decision-making concerning the withdrawal (Liu, Jiang, Yu, Rodenbiker, & Jiang, 2020). The story of relocation for poverty alleviation in less-favored regions can well illustrate this argument (Liu, Zang, & Yang, 2020;Zhang & Han, 2018). ...
... Farmers with higher education levels have a better ability to accept new information and are more inclined to quit their homesteads. The degree of farmer differentiation also has a significant and positive impact on farmers' homestead withdrawal behavior [68], this is consistent with previous studies [69]. The higher the proportion of household non-farm income, the lower the dependence on agriculture and land, making it easier for farm households to enter residential employment, and thus diversify their sources of livelihood. ...
Article
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The implementation of China’s rural homestead withdrawal policy has been a topic of great interest in recent years. However, little is known about its impact on farmers’ homestead withdrawal behavior from the perspective of psychological resilience. This study aims to evaluate the impact of psychological resilience on farmers’ homestead withdrawal behavior and to explore its mechanism and heterogeneity, as well as its impact on compensation choices. The research data was collected through a survey of 657 rural households in Shaanxi and Shandong provinces. The probit model and mediation effect model were used to analyze the data. The results demonstrate that psychological resilience positively affects farmers’ homestead withdrawal behavior; this finding is robust. Specifically, the positive influence of stability and adaptability dimensions of psychological resilience is more significant. Moreover, the effect of psychological resilience varies across different family life cycles, and it has a stronger promoting effect on the homestead withdrawal behavior of child-raising families. Mechanism analysis indicates that psychological resilience can promote homestead withdrawal behavior by reducing farmers’ land dependence consciousness and improving farmers’ risk preferences. Finally, farmers with strong psychological resilience are more inclined to choose cash compensation. Based on these findings, this paper proposes targeted policy recommendations for rural homestead system reform.
... In the operating process of rural factor flow networks, the multi-center characteristics showed that rural units played different roles in the network, which was determined by rural endowments [57]. Rural endowments referred to the functional characteristics of the type, quantity, quality and their combination, including economic endowments (the collection of population, capital, transportation, location, and energy) [58], innovation endowments (the collection of knowledge, technology, information and talents) [47] and land endowments (the collection of Topography, landform, water and soil conditions) [59]. Due to the difference and complementarity between rural endowments, the potential energy difference was generated among rural units, which created the prerequisite for factor flowing. ...
Article
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The networks of factor flows in rural areas are the main support for rural revitalization, which has become one of the research trends in rural geography. Taking a typical industrial town in China as an example, the study explored the operating characteristics of rural factor flow networks and the relations of multi-factor flows based on the social survey method and fine-grained flows data. Results showed that population flows, capital flows and policy flows increased significantly in rural areas. Thereinto, population flows, especially labor flows, mainly ran into the townships and industrial cluster villages, so did capital inflows and outflows, while policy flows ran around the township. The villages with dense population and capital flows formed the "central villages", which had exceeded the township in the two flow networks. Policy flows and capital flows played a guiding role in population flows, so did the policy flows on the capital flows. Meanwhile, the population flows and the capital flows could reinforce each other. In conclusion, a multi-center structure network with the separation of economic center and administrative center had been formed in rural areas. And there was a close interaction between these factor flows. Furthermore, the theoretical model of town-village symbiotic network was constructed.
... In terms of the mechanism construction, scholars mainly focus on the mechanism of rural housing land construction, the mechanism of residential land expropriation and the game mechanism for the stakeholders involved in the withdrawal from residential land [17][18][19], which have important implications for the construction of a perfect mechanism for the withdrawal of rural residential land-use rights. In the matter of behavioral intentions, scholars have explored the factors that influence farmers' behavior in the withdrawal from rural residential land based on field research [20,21]. The main focus has been on the difference in the willingness of rural residents to withdraw their rural residential land-use rights in areas with different levels of economic development [22,23], as well as on the internal and external influences on the willingness [11,[24][25][26]. ...
Article
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The withdrawal of rural residential land-use rights is a major initiative in China’s current rural land reform, and it is of great importance in promoting the rural revitalization and urbanization strategy. The Chinese government encourages farmers to withdraw from their residential bases in an orderly manner to effectively revitalize land resources. The study aimed to explore the key factors that influenced the decision of farmers to withdraw from their rural residential lands in different contexts and proposed suggestions for related policy reforms. Firstly, the study proposed hypotheses based on the theories of the hierarchy of needs and peasant household behavior, combined with the current situation of the research area. Then taking the withdrawal policies and practical experiences of some pilot areas in China as a reference. Secondly, the study set five exit modes for withdrawing the right to use rural residential land and programmed four dimensions of the factors that affected those decisions to form the questionnaire. A total of 533 valid questionnaires were obtained by using scenario simulation. Thirdly, the study analyzed the influential factors of the exit decisions of the different modes using the multivariate ordered logistic regression model and tested the hypotheses using the abovementioned methods. The results showed the following: (1) the willingness of the rural residents to accept the different exit modes for withdrawing their rural residential land-use rights substantially varied. The rural residents prioritized the exit modes that were beneficial to their future housing and other social security. (2) There were some differences in the influencing factors on the exit decisions. Among the four-dimensional factors, the “rural residents’ cognitive characteristics” had a substantial impact on the decisions for withdrawing rural residential land-use rights. Based on the research conclusions, the study proposed some targeted policy suggestions: steadily promoting the construction of a high-quality social security system, promoting classified governance policies based on the diversified needs of farmers and strengthening the individual cognition of relocated farmers to withdraw from homesteads. In addition, a more scientific and reasonable land governance system needs to be established.
... According to China's national conditions (regarding a large population and limited land), improving the utilization efficiency of rural homesteads is a realistic demand to optimize the allocation of urban and rural land resources, and promote urban-rural integrated development. The Chinese government has implemented a rural land reform policy known as withdrawal from rural homestead(s) (WRH), which encourages farmers to give up their occupied homesteads (including their houses and other attachments) voluntarily and relocate to urban or rural concentrated settlements after obtaining reasonable compensation [9]. ...
Article
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The Chinese government has implemented a homestead withdrawal policy to improve the efficiency of rural construction land use. The compensation for rural homestead withdrawal (CRHW) is crucial to the reconstruction and sustainable development of farmers’ livelihoods. This paper analyzed the response mechanisms of farmers’ livelihoods to the CRHW with the combined application of the logistic regression, the mediation effect model, and the moderating effect model. The results indicated that CRHW had a significant positive impact on the sustainable livelihoods of rural households, mainly by improving the physical capital and social capital. In addition, adaptability and livelihood diversity played intermediary and regulatory roles in the positive impacts of the CRHW on sustainable livelihoods, respectively. The conclusions may provide insight into the demand for more reasonable compensation policies to ensure the sustainability of farmers’ livelihoods.
... Thus, the local authorities have regarded the Link Policy as an innovated and effective top-down policy instrument to achieve a balanced urban and rural development and eliminate rural poverty (Long et al., 2010). (See Fig. 2.) However, besides the goals of renovating rural living space and eliminating rural poverty, local authorities have shown great passions for the transaction of extra land quotas created from policy implementation, which raises significantly the local financial income (Liu et al., 2021;Xin and Li, 2018). Given that, local governments are motivated to initiate the resettlement projects with the Link Policy in a rush while ignores farmers' participation, resulting series of related issues, such as the involuntary resettlement (Feng, 2020;The Economist, 2020), challenges to farmers' sustainable livelihood (Gao et al., 2021;Long et al., 2012), and farmers' inadaptation to the changes of lifestyles (Lu and Dang, 2015;Yan, 2014). ...
Article
Massive Development-induced Displacement and Resettlement have been taking places globally, in which China accounts for the major proportion. In recent years, resettlement in China was greatly promoted since the introduction of the Link Policy, which calls for rural resettlement and land consolidation to offer space for urban development. Consequently, cases of violations of farmers' interests appears constantly. This study aims to analyse farmers' decision behaviours of participating in the Link Policy so as to provide policy recommendations for local governments to protect farmers' interests during the resettlement process. With the Theory of Planned Behaviour and case study method, findings from this research show that farmers' subjective norm, perceived behaviour control and attitude are all significantly influencing their behavioural intentions of participation. Corresponding to the more detailed factor analysis results for each construct of TPB, policy recommendations are provided to secure farmers' land use rights and related interests and contribute to achieving a more successful and peaceful rural resettlement under the Link Policy in China's rapid urbanisation and industrialisation process. Reflections of the Link Policy in China can also shed lights on the implementations of resettlement programmes in many other countries.
... They are multifunctional complexes with a living function, agricultural production function, nonagricultural production function, social security function, and asset function [1][2][3][4]. At the same time, they are also the core interaction and coupling of the social economy, folk culture, interpersonal communication, and human-land relationship in rural areas, and they play a vital role for rural residents [5,6]. In addition to being the carrier of buildings such as houses and ancillary facilities, homesteads also carry important values that cannot be ignored, such as social security, rural culture, and clan-blood relationships [7][8][9][10]. ...
Article
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China’s social and economic development is in a critical period of transition. With the implementation of the Rural Revitalization Strategy, new rural industries and new formats have developed rapidly. Profound changes have taken place in the human–land relationship, population structure, industrial structure, and rural functions in the vast rural areas, which have a huge impact on the function and value of rural homesteads. The functional evolution of rural homesteads has a strong driving effect on the change of function value of the homestead. The functional value of rural homesteads is affected by the social and economic development conditions, location, resource endowment, land use policy, rural land trading market, the development of new industries and new formats, and the evolution of homestead function; different homestead functions have different values, especially in the non-agricultural production function and asset function of the homestead. To revitalize the idle and inefficient use of the homestead and fully manifest its value when the homestead is transferred or withdrawn, it is necessary to scientifically calculate the homestead value according to the principle of “what function is lost and what value is compensated”. This paper adopts basic geographic data, rural land transaction data, and social and economic data, and it uses participatory rural appraisal, the land estimation method, and the comparative analysis method. According to the classic theory of “structure determines function and function determines value” in systems engineering, the equivalent substitution method and market value method are used to measure and compare the functional values of traditional agricultural villages and tourist homestay villages before and after the functional evolution. The results show that (1) the leading functional evolution of homestead landlords is closely related to the level of social and economic development. The change in the functional value of the homestead presents the same law as the evolution of its leading function. (2) The functional evolution of the homestead has a strong driving effect on its value change. The increase in value caused by the functional evolution of homesteads in homestay villages is significantly higher than that in traditional agricultural villages. (3) The functional value of the homestead is affected by the social economy, location, resource endowment, land use policy, rural land trading market, business development, and the functional evolution of the homestead. (4) It is suggested that the state formulates the compensation standard for voluntary and paid withdrawal of homesteads according to the “functional value theory of homesteads”, to reduce the unfair value compensation caused by location differences.
... Further, some studies have explored the compensation of homesteads' withdrawal, willingness to withdraw, and factors affecting withdrawal from homesteads in a particular period from the farmers' perspective. Liu et al. [17] argued that farmers' high-value expectations of rural homesteads and the large gap between their expected compensation and prices offered by local governments make promotion of WRH policies challenging. Yu [18] summarised the results of 33 pilot counties (cities and districts) and analysed three representative models in detail, namely "Pingluo experience", "Yujiang model", and "Yiwu wisdom". ...
Article
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In this study, we determined how farmers can be effectively encouraged to withdraw from their idle homesteads, in addition to revitalising the rural construction land stock and realising the market-oriented allocation of land resources. We constructed an evolutionary game model under three scenarios: without penalty mechanism; with a static penalty mechanism; and with a dynamic penalty mechanism. Further, we explicitly describe the strategic behaviours and dynamic evolution processes of local governments and farmers during withdrawal from their rural homesteads. According to the results of the evolutionary stable strategy, under effect of the dynamic penalty mechanism, the strategy systems formed by local governments as well as farmers can gradually converge and stabilise after short-term shocks, compared with that under the no penalty and static penalty mechanisms. Overall, the penalty mechanism mitigates the instability in the game process during participants' incremental changes and strategy choices, while the dynamic mechanism is optimal. Both static and dynamic penalty mechanisms influence the binary equilibrium strategies of local governments as well as farmers, and farmers' strategies evolve towards this state of withdrawal from their homesteads with increasing penalty. When the model is dynamically improved, the probability of farmers' withdrawal of their homesteads increases with increasing penalty. Thus, clearly, the establishment of a penalty mechanism can promote stability of the participants' system; higher penalty implies higher motivation for farmers to withdraw their idle homesteads, enabling revitalisation of the rural stock of construction land and promotion of the optimal allocation of land resource elements.
... With a long-term planned economy since 1949, China has gradually formed a dual system to separate urban and rural areas. As the representative of public interests, local governments can use their "extra-territorial power" [4,13] to acquire land from the rural collective and deprive villagers of land development rights [14], while the rural collective, as a legal owner of rural land, is merely informed that the decision has been made to acquire their land for development [15]. Meanwhile, the availability of rural construction land for residential or public purposes is limited, and transferring this land to commercial end-users is prohibited. ...
Article
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Although local government has played an important role in rural China’s development, some disadvantages of government-led rural construction have gradually emerged with changes in socioeconomic structure, which have negative impacts on rural development. To solve the problems of the traditional rural construction pattern, the introduction of market mechanisms into rural construction became the consensus in theory and in practice. Extant studies emphasize the importance of a market-driven rural construction pattern; however, they do not discuss how to practice this pattern in detail. Thus, this paper uses a case study and comparative analysis to illustrate the background, implementation process and outcomes of the market-driven pattern, aiming to identify the intrinsic dynamics among the local government, market capital and villagers in the market-driven pattern. We argue that although the transformation from a government-led to market-driven pattern is a gradual process, the market-driven pattern is an alternative to the traditional pattern and can better fulfill villagers’ interests and enhance sustainable rural development.
... Rural homesteads have long been a focus of academic studies (Naldi et al., 2015), involving the rural human-land relationship (Dahms, 1995;Amcoff and Westholm, 2007;Chi and Ho, 2018;Cai et al., 2020), the structure and function of rural homesteads (Jiang et al., 2016;Qu et al., 2017;Yang et al., 2020;Cáceres -Feria et al., 2021) and the withdrawal of rural homesteads (Wu et al., 2018;Song et al., 2020;Liu et al., 2021). "Population decrease and land area increase" is a common phenomenon in China's rural areas, but there are also the phenomena of "population decrease and land area decrease", "population increase and land area decrease" and other types (Song and Liu, 2014;Zhu et al., 2020;Dong et al., 2021). ...
Article
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Idle and abandoned rural homesteads not only waste land resources, they also affect the quality of life of farmers and occupy land that could be used for agricultural production and ecological space. Analysis of the supply–demand relationship of rural homesteads is an important prerequisite for the implementation of rural homestead withdrawal and transformation, which is important for improving rural residential quality and land-use efficiency, promoting sustainable development and the classified revitalization of rural areas. Based on high-resolution remote sensing images of typical villages in traditional agricultural areas, a participatory evaluation method was used to analyze the supply–demand balance of rural homesteads and to propose countermeasures for their withdrawal and transformation. The results showed that: 1) rural homesteads have gradually realized the separation of living space and production space, the living function has gradually been enhanced, the production function has gradually weakened, and the ecological aesthetic function has emerged. 2) Farmers’ demand for rural homesteads is driven by various factors, including social and economic development level, lifestyle and livelihood. 3) There are a large number of idle or abandoned rural homesteads in traditional agricultural areas, with great withdrawal potential. The difference between the supply and demand of rural homesteads in use is obvious. The supply of living space of adobe house and mud-brick houses is less than the demand for them, and there is mixed use of space. The supply of production space for brick houses is less than the demand; in general, the supply of buildings is greater than the demand. 4) For rural homesteads still in use, exit and transformation strategies should be formulated according to the relationship between supply and demand, construction quality, spatial independence, and the wishes of farmers. The withdrawal and transformation of rural homesteads based on the balance between supply and demand is in line with the reality of rural development and the Chinese government’s strategy of national rural revitalization.
... As urbanisation accelerates, a 'rural hollowing' of abandoned residential lands and arable lands existed in the countryside (Gao et al., 2017;Liu et al., 2010;Zhang et al., 2019). Local governments in Jianli City have proposed the homestead withdrawal policy of 'land is concentrated to scale operation, the population is concentrated on the community and the industry is concentrated to park' since 2005 (Huang et al., 2018;Liu et al., 2021). This policy has led to the effective use of unused rural residential bases and provided space for the construction of RCF and industrial parks. ...
Article
Agricultural sustainability has important value for boosting regional growth. In recent years, the unprecedented expansion of rice–crayfish field (RCF) in the rural areas of mid-China has raised great concerns in terms of its spatiotemporal dynamics and socioeconomic impact. With Jianli City in mid-China as a case, this study aimed to (1) comprehensively investigate the land-use change in RCF with combined remote sensing and geospatial data analysis, (2) delineate the variations of RCF and socioeconomic benefits from 2010 to 2019 and (3) explore the influencing factors and driving mechanism by using a multiscale geographically weighted regression model. Results illustrated that the RCF development in Jianli City showed an overall uptrend between 2000 and 2019. The area of RCF in 2019 expanded by 599.95% from 2015 levels (from 10,350 ha to 72,445 ha). These extensively expanded RCFs were mainly converted from paddy fields and are distributed around the water area. In terms of socioeconomic benefits, the economic income of villagers increased, whilst the number of out-migrant workers decreased. RCF development effectively contributed to regional economic growth and reduced rural depopulation, thereby facilitating rural transformation from traditional agricultural to characteristic agriculture. The findings clearly showed the spatiotemporal dynamics of RCF and its positive impact on the socioeconomic development of rural areas, thus providing evidence for formulating targeted rural revitalisation policies to achieve rural sustainability.
... On the other hand, these pilot regions are at different levels of economic development and topographical characteristics, which might be helpful in increasing the representativeness of samples To be specific, Luxian County is one of the 15 national level pilots on rural homestead acquisition and approval, paid use of homesteads, and mortgage loans [7]. Situated in Chengdu, the provincial capital of Sichuan, Pidu District and Qionglai City are exploring rural homesteads exit mechanisms within the context of urban-rural integration, comprehensive land remediation, high-standard farmland conservation, new countryside building, and rural vitalization [56]. Topographically, the sample villages are located in the southern mountain area (Luxian and Qionglai) and Chengdu plain (Pidu), respectively. ...
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Village committees, as grassroots spontaneously formed by rural collective members in China’s hierarchy system, play an irreplaceable role in the management of rural public affairs. Based on the filed survey dataset taken from three pilot counties/districts in Sichuan province, we explored the significant role that village committees played in farmers’ withdrawal from rural homesteads (WRH). Our empirical results, according to binary logistic regression (BLR) modelling, indicated that the WRH was significantly affected by the triple roles of village committees, among which information intermediary was the most effective followed by the trust builder and then the coordinated manager. Firstly, village committees’ involvement facilitated the WRH by improving policy transparency and decreasing information cost. Secondly, the depth of village committees’ participation (i.e., being involved in multiple phases) positively affected the WRH given its signification of the participation of farmers. Whereas the breadth of participation (i.e., considering various demands of different participants) negatively affected the process of WRH by reducing the decision-making efficiency. Thirdly, farmers’ trust in institutions played a positive role in the WRH, but their confidence in village cadres had limited impact. We therefore argue that promising village committees should act as “all-round stewards” in the decision-making of rural households, which not only includes the transmit of information between those above and those below, but also needs to actively strive for farmers’ trust by letting their voice heard. Based on our empirical findings, this paper finally proposed some policy suggestions, such as strengthening mutual communication, empowerment of rural grassroots, encouraging farmers’ participation and improving formal institutions.
Book
This book aims to provide a comprehensive analysis of the so-called “endowment effect” in the housing market. In a nutshell, the phenomenon of overvaluing things we own which was first conceptualised in 1980 and has since been one of the most studied behavioural biases in economics. The first chapter presents a systematic review of the literature on the endowment effect in the housing market, together with the identification of research gaps to be filled by other researchers. The second chapter aims to propose a theoretical model explaining the strength of the endowment effect in sales and rental housing markets by primary and secondary markets. The last chapter presents the results of empirical research on the endowment effect in the Polish housing market, testing the model presented in Chapter 2. The chapters can be read together or independently by researchers, students, and policymakers interested in behavioural economics in housing and real estate. For policymakers, the book can be extremely useful as the endowment effect can create friction in the housing market because of a mismatch between the price demands of sellers and buyers, especially in countries where the level of market professionalisation is low (such as Poland). Thanks to the empirical research contained in this book, it will be possible to identify specific market segments where the endowment effect may be particularly elevated – on such segments, policymakers should introduce actions contributing to the elimination of this behavioural bias.
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Social classes, areas of residence, environmental factors, and customs all influence a society's cultural values. These factors typically work together to help in creating the values of the traditional cultural landscape of any society. The traditional village landscape's significance as a cultural heritage is closely linked to the existence of cultural norms and the cultural environment, which together include all of the cultural values. As a result of this, maintaining these elements is essential to ensuring the permanence of history and culture. To assess the significance of traditional village landscape components in shaping the Huizhou identity of the UNESCO World Heritage Site, a case study of Huizhou, Anhui in China was considered. This research employs a systematic literature review (SLR) methodology to explore the value of the traditional village landscape in influencing Huizhou’s identity. The research also examines the heritage value of the traditional village landscape on the Huizhou identity of the UNESCO World Heritage Site (WHS). The results of the study revealed that traditional village landscape elements have greatly influenced the Huizhou identity of UNESCO’s WHS. The findings also demonstrated that traditional village landscapes have valuable recreational, artistic, production, and ecological purposes. This presents justification for the pressing need for the preservation and protection of traditional village landscapes, which requires prioritizing safeguarding the historical aspects of these settlements as well as the overall traditional settlement space and environment.
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ARTICLE INFO ABSTRACT Keywords: The endowment effect has gained dominance over the decades due to its ability to explain behavioral instincts portrayed by individuals when making decisions and its inconsistency with standard economic theories. It has been extensively applied in different fields of study, however its applicability to the housing market has been limited since its establishment. The study seeks to investigate whether the endowment effect exists in the housing market and whether the disclosure of information, increased affordability and agent evaluation significantly reduce the endowment effect. Using data obtained from a survey conducted between January and August 2022 in the Eastern Cape Province of South Africa, the study found that the disclosure of information eliminates the gap between buyers' valuations and market values, while the gap between sellers' valuations and market prices is reduced but not eliminated by information disclosure. The study has further concluded that increased affordability and agent evaluations significantly reduce the endowment effect in the housing market. Therefore, the study recommends that private and public entities should establish laws and regulations which promote the disclosure of information to reduce the gap between the willingness to pay (WTP) and the willingness to accept (WTA) that exists in the market. endowment effect, information asymmetry, real estate market decisions JEL Classification: D82, D91, R32, Citation: Mwanyepedza, R., & Mishi, S. (2024). Endowment effect, information asymmetry, and real estate market decisions: willingness to pay and willingness to accept disparities. Real Estate Management and Valuation, 32(1), 37-48. https://doi.
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Chapter
Massive Development-induced Displacement and Resettlement have been taking places globally, in which China accounts for the major proportion. In recent years, resettlement in China was greatly promoted since the introduction of the Link Policy, which calls for rural resettlement and land consolidation to offer space for urban development. Consequently, cases of violations of farmers’ interests appears constantly. This study aims to analyse farmers’ decision behaviours of participating in the Link Policy so as to provide policy recommendations for local governments to protect farmers’ interests during the resettlement process. With the Theory of Planned Behaviour and case study method, findings from this research show that farmers’ subjective norm, perceived behaviour control and attitude are all significantly influencing their behavioural intentions of participation. Corresponding to the more detailed factor analysis results for each construct of TPB, policy recommendations are provided to secure farmers’ land use rights and related interests and contribute to achieving a more successful and peaceful rural resettlement under the Link Policy in China’s rapid urbanisation and industrialisation process. Reflections of the Link Policy in China can also shed lights on the implementations of resettlement programmes in many other countries.
Chapter
China has been undergoing rapid urbanization and industrialization process since the adoption of economic reform and open-door policy in 1978, which leads tremendous urban growth and encroachment of rural farmland. To address the conflicts between urban development and farmland protection, the Chinese government introduced the Transferable Development Rights (TDR) programme named the Link Policy, and popularized nationwide given the tremendous land revenue from policy implementation. However, being the key stakeholder, the impacts of the policy on farmers’ income need to be examined and justified. Thus, this paper aims to fill this gap by taking Chongqing as a case study. Synthetic Control Method was introduced to construct a synthetic Chongqing without the policy implementation using the 49 municipal cities and Chongqing during 2000–2017. Findings from the analysis indicates that Chongqing’s TDR programme has significantly promoted farmers income at the beginning of the policy implementation while the positive impacts go weak afterwards. Given that, few policy suggestions are offered to facilitate the policy implementation and increase farmers’ household income in the coming future.
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China has been undergoing rapid urbanization and industrialization process since the adoption of economic reform and open-door policy in 1978, which is leading to tremendous urban growth and encroachment on rural farmland. To address the conflicts between urban development and farmland protection, the Chinese government introduced the transferable development rights (TDR) program named the Link Policy, and it was popularized nationwide given the tremendous land revenue from policy implementation. However, as farmers are the key stakeholders, the impacts of the policy on farmers’ income need to be examined and justified. Thus, this paper aims to fill this gap by taking Chongqing as a case study. The synthetic control method was introduced to construct a synthetic Chongqing without the policy implementation using the 49 municipal cities and Chongqing during 2000–2017. Findings from the analysis indicate that Chongqing’s TDR program significantly promoted farmers’ income at the beginning of the policy implementation, while the positive impacts became weak afterward. Based on these findings, a few policy suggestions including a fair revenue distribution scheme and protection of farmers’ land use rights are offered to facilitate the policy implementation and increase farmers’ household income in the coming future.
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Chapter
Rapid urbanisation and industrialisation have accelerated urban expansion which leads to the great loss of farmland. Aiming to preserve farmland for food security while also alleviating the contradiction of the shortage of land for urban development, the Chinese version of Transferable Development Rights programme termed the Link Policy was proposed. It calls for the land consolidation and rural resettlement in rural areas to create land quotas, which can be traded for urban to urban developers while the total amount of farmland keeps unchanged. The commercialisation of land quotas from rural areas has significantly increased local land revenue and thus the Link Policy has been popularized nationwide. However, as one of the crucial stakeholders, whether farmers can benefit from the policy implementation is urgent needed for investigation. Given that, this study takes the typical practice of the Link Policy in Chongqing as the case study to examine the impacts of the Link Policy on farmers’ income. Synthetic Control Method (SCM) was applied to evaluate the policy impacts with the analysis of panel data of 49 municipal regions in 4 provinces and Chongqing from 2000 to 2017. The result shows that the Land Coupon Programme in Chongqing has significantly increased farmers’ household income at the early stage of the policy implementation while the impact is not significant afterwards. Policy recommendations are provided including refining the Land Coupon Programme by establishing an effective risk assessment system and reclaimed land security system, Moreover, a fair land quota revenue distribution system is also needed to increase farmers’ income in the long run. KeywordsSynthetic control methodLand ticketFarmer’s incomeUrbanization
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The endowment effect is the tendency for people who own a good to value it more than people who do not. Its economic impact is consequential. It creates market inefficiencies and irregularities in valuation such as differences between buyers and sellers, reluctance to trade, and mere ownership effects. Traditionally, the endowment effect has been attributed to loss aversion causing sellers of a good to value it more than buyers. New theories and findings - some inconsistent with loss aversion - suggest evolutionary, strategic, and more basic cognitive origins. In an integrative review, we propose that all three major instantiations of the endowment effect are attributable to exogenously and endogenously induced cognitive frames that bias which information is accessible during valuation. Copyright © 2015 Elsevier Ltd. All rights reserved.
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China’s dual land system has restricted the efficient use of its land, particularly in the rural areas. Recently, rural China has been experiencing rapid change of man-land relationship when depopulation and large amount of abandoned residential land coexist. At present, the researches on rural settlements are mainly focused on micro-scale remediation model, reclamation technology and other fields. At the macro level, the factors, driving forces and classification of rural settlements are mostly concentrated. Most of these studies at the micro level neglected the impact of the residential form on residential area, so that the absolute number of science cannot be compared at the macro level. In this paper, through technical means to eliminate the statistical aperture since 2009 and the impact of housing form, we estimate the redundant part of rural residential land of each province in China and analyze the evolution process and its spatial distribution pattern. The results indicate large amount of redundant residential land and obvious spatial distribution difference among the coastal, central and western parts of China. The ‘increase vs. decrease balance’ policy is highly praised to improve the land use efficiency of the redundant residential land and to coordinate the changing man-land relationship in rural China. However, the governments bear the major role in implementing the policy to deal with the redundant residential land. And, the peasants’ willingness of relocation must be respected and their interests must be protected.
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With the rapid development of industrialization and urbanization in China, rural China is entering into a social and economic transformation period. As the national policy has shifted towards ensuring economic development while retaining considerable arable land, China has strictly controlled the conversion of agricultural land to construction land, with the amount of unused land diminishing. In this context, the search for new construction land has become an overwhelmingly urgent task. As a result, remediation of the rural community has gradually become an important choice for Chinese government. In this paper, we have investigated the characteristics of rural residential concentrations and factors affecting the willingness for rural community remediation in different regions of China by using the logistic regression method. A mutual influence model is built to provide a scientific basis for the reclamation and improvement of rural land. The results show that rural farmers in regions with different economic development levels have different preferences in large-scale operations and compensation method. 1) In line with the willingness to remediate (WtR), farmers in the western and central regions have significantly more WtR than those in the eastern region (eastern region < central region < western region) – being affected by large-scale operations rather than themselves and subcontracting/leasehold and, in terms of land mode, the influence of age, family income and compensation mode rather than contract land. 2) In terms of the mutual influence between different regions and large-scale operations, farmers from the eastern region have less WtR than those from western and central regions. 3) In terms of the mutual influence between different regions and the compensation level, farmers from the eastern region also has less WtR than those from western and central regions. The main reason for these differences is likely to be due to the eastern region being much more developed than the other two regions. While the more scattered central and western communities have little impact on living and production, farmers in the eastern region have more entrepreneur activities associated with their land and therefore generate more income, increasing their desire for more land and houses which made governments’ subsidies less attractive. The results could therefore provide a scientific basis and policy guidance for investigation of cooperative development of comprehensive rural community remediation in other regions with similar contexts.
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Resilience has emerged as an attractive conceptual approach for theorizing rural development in terms of highly complex, vulnerable and adaptive systems. In China, land use policies have evidently influenced rural resilience. We conduct a co-citation analysis, especially the visualization of co-citation networks and research clusters, using CiteSpace 4.0.R5. Based on the analysis and literature review, we develop an assessment index system comprising four types of resilience – engineering, ecological, economic and social – to evaluate the changes in rural resilience resulting from a policy to develop a withdrawal mechanism for rural homesteads (WMRH). Our findings indicate that rural resilience in Guangzhou, Chongqing and Wuxi, selected as the study areas, increased by 123%, 61% and 88% respectively after the implementation of the policy. The main causes of these variations in changes in rural resilience are attributed to the diverse economic development modes in the different regions, as well as differing degrees of land market development and government regulation. Overall, the implementation of a WMRH, accompanied by a strong market and government regulation, is found to be optimal for enhancing rural resilience. We conclude that improving rural resilience involves appropriate government regulations as well as simply paying attention to the effects of the market on the optimal allocation of resources.
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In recent years, Chinese governments began exploring centralized residence of rural households, with a view to protecting farming land through the incorporation and reduction of rural construction land, building new countryside, and solving the problem of insufficient construction land quotas for urban development. In the centralized residence process, it is important to study the willingness of rural households and factors influencing their willingness. This empirical study used Panshan County and Jiangshan City as representatives of pure and nonpure farming areas, respectively. Three logistic regression models were applied, to explore differences between pure and nonpure farming areas and the factors influencing rural households' willingness to accept centralized residence according to five aspects: households individual characteristics, family economy, policy perception, housing conditions, and social environment. The results showed that, for nonpure farming areas, such as Jiangshan City, when there is more trust in the village collective, less arable area, increased satisfaction with infrastructure and higher non-agricultural income, the more willing rural households are to accept centralized residence. In pure farming areas, such as Panshan County, when there are greater expectations of policy, the safer environments and higher non-agricultural income, the more willing rural households are to accept centralized residence. By comparison, rural households in nonpure farming areas are more concerned with fairness future quality of life, while those in pure farming areas are more concerned with implementation and guaranteed compensation. China's centralized residence policy should focus on the objective conditions of each region, and appropriately differentiate based on different areas and categories.
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Three decades since the first wave of rural–urban migration, the new generation of migrant workers has become the main force of internal migration in China. The present paper comprehensively explores the profiles of the new generation of migrant workers in urban China. We find that the “new generation” migrants are more educated and skilled, and are likely to work in manufacturing and service industries than in the construction industry. Moreover, they tend to allocate more time to non-farm activities and have more months away from home per year in urban areas. In contrast to their predecessors, they tend to migrate to urban areas with their spouses, consume more in urban areas and send less money back home. Our findings suggest that the differences in features between the new generation of rural migrants and urban residents have become smaller and the integration of rural migrants into urban China has taken place gradually.
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Why do Chinese farmers continually utilize high-quality yet scarce cultivated land and extensively construct residences? Why is the Chinese government unable to control the continuous expansion of rural residential land after implementing strict economical and intensive land policies? To answer these questions, we launched a comparative study of three townships in Zhejiang Province. Based on a survey of 576 households and 72 rural government officials, this paper identified the determinants of rural house-building, explored different models of government intervention and provided recommendations for future government efforts. Results showed that (1) children, environment, investment, “mianzi” and “feng shui” factors were the main driving forces that influence farmers to construct residential structures, although primary and secondary differences in the various townships existed; (2) three problems in the specific governance emerged: the lack of farmers’ unified action, failure to protect the rights of farmers, and the problem of meeting the funds demand of homestead replacement; (3) Actively exploring effective village planning, establishing linkages among stakeholders, effectively promoting farmers’ participation, creating a service-oriented government, and introducing a Public-Private Partnership mechanism may effectively address the problems related to rural residential expansion and governance. The results indicated a need to pay more attention to the motivations of rural house-building, the interests of stakeholders and the funding arrangements of the project in future government intervention.
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Rural housing abandonment (RHA) is happening on a large scale in China and accumulatively leads to the phenomenon of village hollowing. This paper conducts a microscopic analysis on the influencing factors of individual decision making in the process of RHA through an empirical study on Pi County in southwest China. Our multi-level logistic regression shows that RHA is mainly influenced by the pulling forces of urban economy and the deteriorated physical condition of rural houses. We discuss that how these factors exert their influence is further linked with the institutional barriers in China that impede the free movement of residents and properties between urban and rural systems, which distorts individual choices towards RHA. Therefore, we suggest policies that promote the equalization of rural and urban residents and recognize the need for the free transfer of rural land and property, as well as the need to develop tools that effectively predict the emergence of RHA.
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Plott and Zeiler (2007) manage to extinguish exchange asymmetry—but as a result of failing to control for whether the items are presented sequentially or simultaneously. This study examines the effect of timing. It finds that exchange asymmetry emerges when the timing is sequential, even when we follow the Plott/Zeiler methodology, i.e., use lottery.
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To understand the functional evolution of rural housing land at different stages of industrialization, a contrast analysis of rural housing land functions was conducted across four typical areas that represented four different socio-economic developmental stages, from the initial stage to the post-industrialization stage. Seven hundred fifty-four valid questionnaires were collected for analysis. The results showed that the production function was diminished but the living function was enhanced with socio-economic development. Moreover, in areas that had a higher level of socio-economic development, especially those with desirable locations or that were suitable for tourism, a profit function emerged that can be seen as resulting from an alteration in the rural housing land's function. Land-use standards could be established by analysing trends in the functional evolution of rural housing land structure; these standards could then provide guidance for the consolidation of rural housing land and village planning as well as for future rural housing design.
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The peri-urban fringes of large metropolitan areas of Australia continue to experience major changes as natural and semi-natural landscapes are converted to built-up areas largely through increased residential development. These irreversible conversions are producing significant challenges for ecological and environmental protection. Yet, there has been little attempt to systematically analyse and model some of the key spatial features of these peri-urban fringes, especially in terms of examining factors underpinning new residential development. This paper attempts to fill this information gap using Adelaide, South Australia, as an exploratory case study. Using parcel-level data, we quantified spatial patterns of residential development during four consecutive periods (ten-year intervals between 1971 and 2010), revealing a gradual slow-down in the rate of new housing development after the 1980s. The effects of major roads and services, residents’ attraction to areas of high natural amenity, and previous residential development were estimated using logistic regression models and geographically weighted logistic regression models, respectively. Variation partitioning was used to examine the relative importance of three groups of predictors of residential development. Roads and services had the greatest impact on the pattern of residential development in the 1970s, while previous residential development ranked first among the three groups of forces in the last three time-periods. Influences relating to the attraction of natural amenities were of the least importance to peri-urban residential development during all four periods. These findings can help understand change mechanisms within peri-urban fringes and to develop corresponding policy responses to improve their management.
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When an object comes into possession, the owner will typically think that it is worth more than it did before they owned the item in a bias known as the endowment effect. This bias is particularly robust in Western societies with independent self-construals, but has not been observed in children below 5–6years of age. In three studies, we investigated whether endowment effect can be induced in younger children by focusing their attention on themselves. 120 children aged 3–4years evaluated toys before and after a task where they made pictures of themselves, a friend or a neutral farm scene. Over the three studies, children consistently evaluated their own possessions, relative to other identical toys, more positively following the self-priming manipulation. Together these studies support the notion that possessions can form part of an “extended self” from early on in development and that the endowment effect may be due to an attentional self-bias framing.
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Research summary: Building on the problem‐solving perspective, we study behaviors related to projects and the communication‐based antecedents of such behaviors in the free open‐source software ( FOSS ) community. We examine two kinds of problem/project‐behaviors: Individuals can set up projects around the formulation of new problems or join existing projects and define and/or work on subproblems within an existing problem. The choice between these two behaviors is influenced by the mode of communication. A communication mode with little a priori structure is the best mode for communicating about new problems (i.e., formulating a problem); empirically, it is associated with project launching behaviors. In contrast, more structured communication fits subproblems better and is related to project joining behaviors. Our hypotheses derive support from data from the FOSS community. Managerial summary: We study how the way in which individuals communicate influence the project‐behaviors they engage in. We find that relatively unstructured communication is associated with the setting up new projects, while communication that is structured around an artifact is associated with joining projects. Our findings hold implications for understanding how management may influence project behaviors and problem‐solving: Firms that need to concentrate on more incremental problem‐solving efforts (e.g., because a sufficient number of attractive problems have already been defined) should create environments in which interaction is undertaken mainly via artifacts. On the other hand, if firms seek to generate new problems (e.g., new strategic opportunities), they should create environments in which open‐ended, verbal conversation is relatively more important than artifact‐based communication. Copyright © 2015 John Wiley & Sons, Ltd.
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Although event-study methodology is invaluable to strategic management research, we argue that the traditional financial economic rationale on which it is based has led scholars to assume away the behavioral mechanisms underlying investor reactions. Building on behavioral theory from management, psychology, and economics, we set out to develop a behavioral perspective on investor reactions to acquisition announcements-one that relaxes the assumption of investors making objective, rational-deductive calculations. Given the information asymmetry they face, we theorize that investors (1) infer management's perception of an acquisition's synergistic potential from the premium it pays, and (2) draw on additional public information to assess the reliability of that perception. Using a multi-industry sample of acquisitions by North American firms, we find considerable support for our behavioral framework.
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This research proposes that the WTA-WTP disparity between sellers and buyers in the endowment effect can be understood in terms of sellers’ emotional attachment to the endowed item. Consistent with this hypothesis and how affective considerations are more diagnostic for hedonic than utilitarian goods, the results of an experiment indicate that the pricing disparity occurs primarily for hedonic goods. This finding explains many of the moderators that have been proffered for the endowment effect.