How do the poor cope with hardships when mutual assistance is unavailable?
This paper investigates how risk coping strategies differ between idiosyncratic and covariate income shocks using evidence from a nation-wide flood in Bangladesh. It is found that availability of coping strategies significantly depends on the covariate-idiosyncratic characteristic of shocks. The main strategies for idiosyncratic and moderate covariate shocks are interest-free informal credit and additional labor supply for fishing, but they are not utilized to cope with the severe covariate shocks. Instead, people must resort to borrowing with high interest as a last resort.
Volume (Year): 15 (2008)
Issue (Month): 13 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Ravallion & Shubham Chaudhuri, 1997. "Risk and Insurance in Village India: Comment," Econometrica, Econometric Society, vol. 65(1), pages 171-184, January.
- Dercon, Stefan, 2002.
"Income Risk, Coping Strategies and Safety Nets,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Stefan Dercon, 2000. "Income risk, coping strategies and safety nets," Economics Series Working Papers WPS/2000-26, University of Oxford, Department of Economics.
- Stefan Dercon, 2000. "Income risk, coping strategies and safety nets," CSAE Working Paper Series 2000-26, Centre for the Study of African Economies, University of Oxford.
- Marcel Fafchamps & Chris Udry & Katherine Czukas, .
"Drought and Saving in West Africa: Are Livestock a Buffer Stock?,"
97013, Stanford University, Department of Economics.
- Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
- Fafchamps, Marcel & Lund, Susan, 2003.
"Risk-sharing networks in rural Philippines,"
Journal of Development Economics,
Elsevier, vol. 71(2), pages 261-287, August.
- Marcel Fafchamps & Susan Lund, . "Risk Sharing Networks in Rural Philippines," Working Papers 97014, Stanford University, Department of Economics.
- Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
- Handa, Sudhanshu & King, Damien, 2003. "Adjustment with a Human Face? Evidence from Jamaica," World Development, Elsevier, vol. 31(7), pages 1125-1145, July.
- Fafchamps, Marcel & Gubert, Flore, 2007.
"The formation of risk sharing networks,"
Journal of Development Economics,
Elsevier, vol. 83(2), pages 326-350, July.
- Gubert, Flore & Fafchamps, Marcel, 2007. "The Formation of Risk Sharing Networks," Economics Papers from University Paris Dauphine 123456789/4392, Paris Dauphine University.
- Marcel Fafchamps & Flore Gubert, 2005. "The Formation of Risk Sharing Networks," Working Papers DT/2005/13, DIAL (Développement, Institutions et Mondialisation).
- Marcel Fafchamps & Flore Gubert, 2005. "The Formation of Risk Sharing Networks," Economics Series Working Papers GPRG-WPS-037, University of Oxford, Department of Economics.
- Morduch, Jonathan, 1994.
"Poverty and Vulnerability,"
American Economic Review,
American Economic Association, vol. 84(2), pages 221-25, May.
- Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
- repec:cup:cbooks:9780521338257 is not listed on IDEAS
- Paxson, Christina H, 1993.
"Consumption and Income Seasonality in Thailand,"
Journal of Political Economy,
University of Chicago Press, vol. 101(1), pages 39-72, February.
- Jonathan Morduch, 1995.
"Income Smoothing and Consumption Smoothing,"
Harvard Institute of Economic Research Working Papers
1727, Harvard - Institute of Economic Research.
- 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.
- 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.
- Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
- Ersado, Lire & Alderman, Harold & Alwang, Jeffrey, 2003. "Changes in Consumption and Saving Behavior before and after Economic Shocks: Evidence from Zimbabwe," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 187-215, October.
- Shahidur R. Khandker, 2007. "Coping with flood: role of institutions in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 169-180, 03.
- Kochar, Anjini, 1995. "Explaining Household Vulnerability to Idiosyncratic Income Shocks," American Economic Review, American Economic Association, vol. 85(2), pages 159-64, May.
- Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-08o10015. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.