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Who Shares Risk with Whom under Different Enforcement Mechanisms?

Listed author(s):
  • Abigail Barr
  • Marleen Dekker
  • Marcel Fafchamps

We investigate whether available enforcement mechanisms affect who shares risk with whom in sub-Saharan Africa, by applying dyadic regression analysis to data from a lab-type experiment, surveys, and a genealogical-mapping exercise. During the experiment, participants were invited to form risk-sharing groups under three enforcement mechanisms: external, intrinsic, and extrinsic (i.e., social sanctioning). Same-sex dyads and dyads who belong to the same economic community-based organizations (CBOs) are more likely to share risk. However, when social sanctioning is possible, comembers in economic CBOs withdraw from group formation and coreligion, and marriage ties come to the fore.

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File URL: http://dx.doi.org/10.1086/665599
Download Restriction: Access to the online full text or PDF requires a subscription.

File URL: http://dx.doi.org/10.1086/665599
Download Restriction: Access to the online full text or PDF requires a subscription.

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Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 60 (2012)
Issue (Month): 4 ()
Pages: 677-706

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Handle: RePEc:ucp:ecdecc:doi:10.1086/665599
Contact details of provider: Web page: http://www.journals.uchicago.edu/EDCC/

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  1. Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
  2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
  3. Kinsey, Bill & Burger, Kees & Gunning, Jan Willem, 1998. "Coping with drought in Zimbabwe: Survey evidence on responses of rural households to risk," World Development, Elsevier, vol. 26(1), pages 89-110, January.
  4. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
  5. Dekker, Marleen, 2004. "Sustainability and Resourcefulness: Support Networks During Periods of Stress," World Development, Elsevier, vol. 32(10), pages 1735-1751, October.
  6. Dercon, Stefan & De Weerdt, Joachim & Bold, Tessa & Pankhurst, Alula, 2006. "Group-based funeral insurance in Ethiopia and Tanzania," World Development, Elsevier, vol. 34(4), pages 685-703, April.
  7. Abigail Barr & Marleen Dekker & Marcel Fafchamps, 2010. "The formation of community based organizations in sub-Saharan Africa: An analysis of a quasi-experiment," CSAE Working Paper Series 2010-21, Centre for the Study of African Economies, University of Oxford.
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