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Social Identity and the Formation of Health Insurance Networks

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  • Joachim De Weerdt
  • Marcel Fafchamps

Abstract

In a panel survey of an informal insurance network in Tanzania we find none of the tell-tale signs that insurance transfers follow reciprocal risk sharing arrangements among self-interested individuals: insurance remittances do not occur through informal loans; transfers are not regressive; and they do not fall when shocks are repeated over time. The evidence of unreciprocated transfers occurring between kin is suggestive of risk sharing based on altruism or social norms .

Suggested Citation

  • Joachim De Weerdt & Marcel Fafchamps, 2011. "Social Identity and the Formation of Health Insurance Networks," Journal of Development Studies, Taylor & Francis Journals, vol. 47(8), pages 1152-1177, June.
    • Handle: RePEc:taf:jdevst:v:47:y:2011:i:8:p:1152-1177
    DOI: 10.1080/00220388.2010.527952
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    1. repec:pri:cheawb:case_paxson_orphansafrica is not listed on IDEAS
    2. repec:pri:rpdevs:case_paxson_orphansafrica is not listed on IDEAS
    3. repec:pri:cheawb:case_paxson_orphansafrica.pdf is not listed on IDEAS
    4. Marcel Fafchamps, 2003. "Rural Poverty, Risk and Development," Books, Edward Elgar Publishing, number 3127.
    5. Bloch, Francis & Genicot, Garance & Ray, Debraj, 2008. "Informal insurance in social networks," Journal of Economic Theory, Elsevier, vol. 143(1), pages 36-58, November.
    6. Anne Case & Christina Paxson & Joseph Ableidinger, 2004. "Orphans in Africa: parental death, poverty, and school enrollment," Demography, Springer;Population Association of America (PAA), vol. 41(3), pages 483-508, August.
    7. repec:pri:rpdevs:case_paxson_orphansafrica.pdf is not listed on IDEAS
    8. Christopher Ksoll, 2007. "Family Networks and Orphan Caretaking in Tanzania," Economics Series Working Papers 361, University of Oxford, Department of Economics.
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