Household Portfolio Of Suburban Land-lost Farmers

Since in the middle of 90 time of twentieth Century, with urban expansion, the land-lost peasants became more and more, the peasant problem has become the problem of land-lost peasants. The results of land-lost farmers research focus on land compensation and resettlement, social security, employment and sustainable livelihoods, but some new problems such as the land-lost peasants’subjective well-being, the gap between rich and poor and the financial capital waste problem has not attracted enough attention in the research. Especially in recent years the land compensation has increased year by year, but a survey by the city of Huaian in Jiangsu province shows that:farmers land compensation has become a waste of resources. Therefore, how to guide the farmers to the effective use of land compensation for investment, ensure the preservation and appreciation of the capital, is the "power in the now, and in the future" key things.We based on Prospect Theory, Psychic Accounting theory and Behavior Portfolio Theory, in view of behavioral finance, study the new problem of land-lost peasants, present situation and influence factors of household portfolio choice by ways of the theoretical research, comparative analysis, questionnaire investigation and experiment:(1) based on empirical data, we analysis the "paradox of happiness" and "income polarization" of land-lost peasants which is the new problem that land-lost peasants faced through establish Multiple Regression Model and Tobit Model; (2) reveal the present situation and characteristic for household portfolio choice of land-lost peasants by statistic analysis; (3) investigate the influence factors of household portfolio choice of land-lost peasants by establishing model of Probit and Tobit; (4) reveal the mental mechanism of "conservative and risk coexist", "wealth effect" and "herd behavior" by behavior experiment and mediating effect model; (5) put forward the conclusions and corresponding policy recommendations.The main conclusions and recommendations reads as follows:1. Through the empirical research on 400 land-lost peasants in the suburb of Jinan, we find that the new problems they faced is "paradox of happiness" and "income polarization" phenomenon, and the fundamental influence factor of the land-lost peasants’subjective well-being is the sense of income fairness, the more or less of production and business operation income and property income is the main reason of land-lost peasants’income polarization, so the suburban land-lost peasants’household portfolio choice is very important.2. Analysis of the suburban land-lost peasants’participation rate and financial assets accounted of household portfolio choice, we find that there is a phenomenon of "conservative and risk coexist", The classification of the family assets according to different wealth status, different land-lost years and different age for suburban land-lost farmers, we found the suburban land-lost farmers’household portfolio choice has obvious "wealth effect", "herd behavior" and "life cycle effect"3. We found that the influence factors are different with different types of household portfolio choice participate, no matter portfolio selection participate and accounted, age, education level, risk preference and financial knowledge have significant positive prediction effect. So the suburban land-lost farmers’ portfolio selection will be affected by the internal factors, such as physical status, cultural level, risk preferences and investment knowledge.4. Experimental study on the psychological mechanism of "conservative and risk coexist" phenomenon,we found that the suburban land-lost peasants’ household portfolio choice be effected by the psychological accounts of land-lost peasants’, when the land-lost peasants put some money into positive emotions and windfall account, they would more preference to risk investment, when the land-lost peasants put some money into negative emotions and routine income account, they tend to more stable investment.experimental studies on the psychological mechanism of "wealth effect", results revealed that the rich suburban land-lost farmers’risk investment preference is higher than the poor, risk investment preference plays a partial mediating role of wealth and risk investment; feeling of scarcity for money is higher to poor suburban land-lost farmers than rich, money plays a partial mediating role of wealth and risk investment; study on the psychological mechanism of "herding behavior", results showed that all the suburban land-lost farmers and the urban inhabitants present obvious herding behavior, but there is no significant difference in the degree of "herding behavior"between them; the people with low investment ability present obvious "herding behavior" in the process of investment, but this effect did not find in people with high investment ability.5. In order to improve the land-lost farmers’ subjective well-being, to reduce the "income polarization" and optimize the household portfolio, the government should establish and perfect the social security system for land-lost farmers; improve the cash compensation of land-lost farmers; improve the modern public cultural service system for land-lost farmers; strengthen education and training; land compensation payment of its sub categories, guide a modest investment in risky invest; guide rational investment, control the proportion of investment of lottery; founded the village collective economy and establish mechanism of collective investment.