Research on the Farmers’ Willingness to Pay the Com-mercial Insurance by Discrete Selection Model

Lu WANG

School of Economics and Management, Chongqing Jiaotong University, Chongqing, CHINA

Abstract: The development of commercial insurance in rural areas has great market potential, it can protect farmers’ lives while sharing the risk of agricultural production activities. To understand the willingness of farmers to participate in commercial insurance, commercial insurance can be better served in rural areas, agriculture and farmers. In this context, based on the survey data of 52 households in a town in Beijing, the discrete selection model was established by Eviews software, and the main factors influencing the farmers’ participation in commercial insurance were analyzed statistically. The results show that the age of farmers has no significant effect on whether ｏｒ not to participate in insurance, and the household income of farmers has a significant impact on whether ｏｒ not to participate in insurance.

Keywords: Commercial insurance;Age;Household incomes per capita;Discrete selection model