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Do the Commons Help Augment Mutual Insurance Among the Poor?

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  • Takasaki, Yoshito

Abstract

Summary Poor people rely on local commons not only for self-insurance, as commonly found, but also for mutual insurance, depending on resources and shocks. This paper demonstrates that this conjecture holds among cyclone victims in the Pacific Islands. On one hand, households increase coastal fishing and handicraft selling, but not forest-product gathering, to smooth income against own crop damage. On the other hand, households with undamaged housing intensify fishing to help other kin-group members with damaged housing. These distinct patterns of using commons as insurance are explained by distinct forms of risk sharing against these two shocks.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 3 (March)
Pages: 429-438

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:3:p:429-438

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: commons self-insurance mutual insurance Pacific Fiji;

References

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  1. Cochrane, John H, 1991. "A Simple Test of Consumption Insurance," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 957-76, October.
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  13. MR Rosenzweig, 2001. "Savings behaviour in low-income countries," Oxford Review of Economic Policy, Oxford University Press, vol. 17(1), pages 40-54, Spring.
  14. Yoshito Takasaki & Bradford L. Barham & Oliver T. Coomes, 2010. "Smoothing Income against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net?," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 48-63, 02.
  15. Anjini Kochar, 1999. "Smoothing Consumption by Smoothing Income: Hours-of-Work Responses to Idiosyncratic Agricultural Shocks in Rural India," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 50-61, February.
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  19. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2004. "Risk coping strategies in tropical forests: floods, illnesses, and resource extraction," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 203-224, May.
  20. Subhrendu K. Pattanayak & Erin O. Sills, 2001. "Do Tropical Forests Provide Natural Insurance? The Microeconomics of Non-Timber Forest Product Collection in the Brazilian Amazon," Land Economics, University of Wisconsin Press, vol. 77(4), pages 595-612.
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Cited by:
  1. Shackleton, Charlie M. & Pandey, Ashok K., 2014. "Positioning non-timber forest products on the development agenda," Forest Policy and Economics, Elsevier, vol. 38(C), pages 1-7.
  2. Yoshito Takasaki, 2013. "Learning from disaster: Community-based marine protected areas in Fiji," Tsukuba Economics Working Papers 2013-001, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.

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