Informal Risk-Sharing and Poverty Persistence
AbstractAn old intuition suggests that poverty may perpetuate itself due to mild risk taking.� Risk-averse individuals remain in poverty while their more daring peers escape by means of high-return, high-risk activities.� As a growing literature increasingly highlights the role of insurance as a trigger for income-enhancing choices, several implications arise - informal risk-sharing agreements have found new attention, private microfinance and micro-insurance products have been promoted, and also public funds have been called to provide the poor with safety nets and thus encourage them into more entrepreneurial choices.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number CSAE WPS/2009-19.
Date of creation: 01 Oct 2009
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- Yogo, Urbain Thierry & Mallaye, Douzounet, 2012. "Social Network and Social Protection: Evidence from Cameroon," MPRA Paper 44935, University Library of Munich, Germany.
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