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Informal insurance, public transfers and consumption smoothing

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Author Info

  • Dercon, Stefan

    (CSAE)

  • Pramila Krishnan

    (Jesus College)

Abstract

In developing countries, public programs in the form of food aid distribution are often meant to protect vulnerable households from consumption downturns by providing a safety net. Few studies have evaluated the impact of these programs. Furthermore, households often use a variety of informal mechanisms to cope with risk. We look into the extent to which food aid helps to smooth consumption by reducing the impact of negative shocks, controlling for program placement effects and informal risk-sharing. Using panel data from Ethiopia, we find that despite poor targeting, the programs reduce some of the vulnerability to common shocks via intra-village risk sharing.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 60.

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Date of creation: 29 Aug 2002
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Handle: RePEc:ecj:ac2002:60

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Cited by:
  1. Barrett, Christopher B. & Holden, Stein & Clay, Daniel C., 2002. "Can Food-for-Work Programmes Reduce Vulnerability?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Rashid, Shahidur, 2011. "Intercommodity price transmission and food price policies: An analysis of Ethiopian cereal markets," IFPRI discussion papers 1079, International Food Policy Research Institute (IFPRI).

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