The Study Between Bounded Rationality And The Behavioral Logic Of Farmers’ Participation In The New Agricultural Insurance

This paper surveys some rural households in Quanzhou that participate in Thenew agricultural insurance as sample and studies the main factors that affect farmers’insured behavior. On the basis of these factors, we also want to utilize the ideology ofSimon’s bounded rationality theory to conclude and explain the logic of farmers’insured behavior.The new rural social pension insurance is known as the "The new agriculturalinsurance ", prior to this, the pension insurance that practiced in rural areas is calledthe old agricultural insurance.The division is based on “To carry out the new ruralpension insurance pilot guidance” which issued by the State Council in2009. Theimplementation of The new agricultural insurance aims at putting on the track of ruralendowment building, to improve the livelihood security of farmers after their elderly.However, as a preferential agricultural policy for these years, rural areas have not yetachieve the full insured, and there are still a part of farmers which are not insured orinsured in low-grade. In this paper, we want to study the behavior of the insuredfarmers, and our study is mainly divided into two levels, one is whether they willparticipate in endowment insurance, the other is which grade they have insured.Firstly, we conduct correlation test between individuals, families, communities,policy these four factors and farmers insured or not and their insured grade. Weexcluded the factors that the correlation was not significant, then on the basis of,usethe dibasic Logistic regression to analyze the factors that affect farmers to insure. Usethe multiple linear regression to analyze the factors that affect farmers’ insured grade.Combined the analysis of human cognition of Simon, and his proposal that decisionsneed to consider the reasonableness physiological factors, cognitive factors andmotivational factors, we sort out the independent variables that in the individuals,families, communities and policy factors, and categorize these variables intophysical, cognitive and motivational factors in three areas. The results showed that:whether farmers will insure or not is primarily affected by the cognitive factors, and the farmers’ insured grade is mainly affected by the physiological factors and themotivational factors.The study found that: in the process of farmer making the insured behavior, theydid not and can not take into account all factors that may exist, which is a finiterational thought process, and factors that impact if they will insured and the insuredgrades they take are different. Thus in rural areas, in the process of promoting thenew agricultural insurance, improving the rural pension system construction, thegovernment, especially the grassroots, governments should stand in the perspective offarmers and seize the different factors that may be taken into account when farmersmake different decisions, thereby seize the main living contradiction, prescribe theright medicine, and effectively improve the rural pension level, building aharmonious countryside.