Attitudes to Risk and Insurance in Chinese Households and Enterprises

This research study employs data from two surveys; one of Chinese households and the other of Chinese enterprises. The study examines attitudes of Chinese households and enterprises to risk and insurance issues. The report first describes the surveys. It then presents a theoretical framework for the investigation of risk attitudes which is based on the theory of decision making under risk, as articulated by Western economic literature. The relationship of the survey findings to the theory are examined for households and enterprises separately. Then risk aversion patterns of households and enterprises are compared. The report discusses the practical implications of the findings and some of the limitations of the study. Finally, suggestions are made for useful future research. The study is one of several investigations based on these survey data.