The Confirmation And Measurement Of Transition Cost In The Rural Endowment Insurance:

With the arrival of the wave of the aging population, the world pension funding model are changing from a PAYG(Pay-As-You-Go) system to a funded system. By the principle of institutional economics, the transition from one system to another exists transformation cost. From the Chinese basic national conditions, China’s new rural social endowment insurance pilot project began in2009.And as an opportunity to build a new rural endowment insurance system covering the whole country, the construction of this system will generate the corresponding transition costs.In this paper, the investigation concludes the following four aspects:first, the young and middle-aged people’basic personal and family situation; second, individual endowment intention and the participation of the old rural endowment system; third, the affordment and relevant regulations; forth, the understanding and satisfaction of the new rural endowment insurance system. On the basis of the description statistics of the data, using ordered logit model to analyze the influence factors that affecting the residents’participation in the new rural endowment insurance system. It turned out to be that rural residents age, income structure, family expenditure structure, the responsibility of the government in the endowment insurance, the degree of residents understanding of the new system, the participation in the old rural endowment insurance system, the total number of children in the home, resident’s own economic bear ability exist significant influence. The change of these factors will affect the transition cost.After the empirical analysis on the existence of the transition cost in the process of transition, we measured the scope of the transition cost. Results show that the government’s burden is different in different age range, but it’s not big. This gap mainly comes from government entrance subsidies for residents. And affected by the export subsidy system arrangement, the central government’s fiscal pressure to the Midwest is greater than that in the eastern region. The local government fiscal pressures in the eastern region are greater than that in the central and western regions. But overall, without the consideration of time value and the interest, on the level of100yuan payment, to build a cover all rural endowment insurance system in China, the government should bear at least4.4759trillion yuan transition cost.So the government should increase support to education; To strengthen the construction of countryside, improving farmers’income structure; To improve the government’s responsibility in the new rural endowment system; Increase the propaganda of the new policy; Continue to perfect the new system’s specific institutional arrangements, and pay more attention to the implementation, through the above measures to minimize the transition cost in the process of system transformation.