Risk Sharing and Network Formation
AbstractIn this article the authors examine the motivation behind the formation of risk pools. They do so by using as suitable study data survey information collected among the rural poor of the Philippines. They discuss the possibility that network formation comes as the result of an attempt to maximize gains derived from shared risk to income within a social group. They note that the most significant benefits of pooled risk occur when individuals are of different occupations and there is a variety of risks faced.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 97 (2007)
Issue (Month): 2 (May)
Other versions of this item:
- Marcel Fafchamps & Flore Gubert, 2007. "Risk Sharing and Network Formation," Economics Series Working Papers GPRG-WPS-067, University of Oxford, Department of Economics.
- Gubert, Flore & Fafchamps, Marcel, 2007. "Risk Sharing and Network Formation," Economics Papers from University Paris Dauphine 123456789/10840, Paris Dauphine University.
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
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