The Effectiveness and Improvement Mode of the Policy “Three Rural Issue ” in China under the Behavioral Economic Perspectives

The Three Rural Issues has been the top priority of the whole Country’ s work. With victory in battle of ending extreme poverty in China, the core of the Three Rural Issues has shifted from “ending extreme poverty” to “comprehensive rural revitalization” . However, parochialism cause peasants’ irrational behaviors, which damage effective of rural related policy and subsidy. These irrational behaviors include present bias, endowment effect, sunk cost fallacy, and other-regarding decision preference. In this paper, based on the behavioral economics, we will discuss why peasants have these irrational behaviors and how to “nudge” peasants to fix these irrational behaviors to increase effective of rural policy and subsidy.