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Insurance and Investment within Family Networks

Author

Listed:
  • Manuela Angelucci

    ()

  • Giacomo de Giorgi

    ()

  • Imran Rasul

    ()

  • Marcos A. Rangel

Abstract

In this paper family networks affecting informal insurance and investment is being studied. Panel data from the randomized evaluation of PROGRESA in rural Mexico and the information on surnames of household heads and their spouses to identify extended families have been used. Members of an extended family: 1) share risk with each other but not with households without relatives in the village; 2) invest more in their children's human capital when hit by positive income shocks, and disinvest less when hit by negative shock, and 3) have a higher long-term increase in capital, income, and consumption than households without relatives in the village. [Working Paper No. 260]

Suggested Citation

  • Manuela Angelucci & Giacomo de Giorgi & Imran Rasul & Marcos A. Rangel, 2010. "Insurance and Investment within Family Networks," Working Papers id:2649, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2649
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," American Economic Review, American Economic Association, vol. 82(5), pages 1177-1198, December.
    2. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-1166, December.
    3. Pedro Albarran & Orazio P. Attanasio, 2003. "Limited Commitment and Crowding out of Private Transfers: Evidence from a Randomised Experiment," Economic Journal, Royal Economic Society, vol. 113(486), pages 77-85, March.
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    Cited by:

    1. Krislert Samphantharak & Robert M. Townsend, 2018. "Risk and Return in Village Economies," American Economic Journal: Microeconomics, American Economic Association, vol. 10(1), pages 1-40, February.
    2. Rita Ginja, 2010. "Income Shocks and Investments in Human Capital," 2010 Meeting Papers 1165, Society for Economic Dynamics.
    3. Emla Fitzsimons & Bansi Malde, 2014. "Empirically probing the quantity–quality model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 33-68, January.
    4. Meghir, Costas & Pistaferri, Luigi, 2011. "Earnings, Consumption and Life Cycle Choices," Handbook of Labor Economics, Elsevier.
    5. Belhaj, Mohamed & Deroïan, Frédéric, 2012. "Risk taking under heterogenous revenue sharing," Journal of Development Economics, Elsevier, vol. 98(2), pages 192-202.
    6. DELPIERRE Matthieu & VERHEYDEN Bertrand & WEYNANTS Stéphanie, 2011. "On the interaction between risk-taking and risk-sharing under farm household wealth heterogeneity," LISER Working Paper Series 2011-35, LISER.
    7. Giacomo De Giorgi & Luca Gambetti, 2012. "Consumption Heterogeneity over the Business Cycle," Working Papers 646, Barcelona Graduate School of Economics.
    8. Bandiera, Oriana & Gulesci, Selim & Rasul, Imran & Burgess, Robin, 2009. "Community networks and poverty reduction programmes: evidence from Bangladesh," LSE Research Online Documents on Economics 58054, London School of Economics and Political Science, LSE Library.
    9. Ciro Avitabile, 2012. "Spillover Effects in Healthcare Programs: Evidence on Social Norms and Information Sharing," IDB Publications (Working Papers) 4201, Inter-American Development Bank.

    More about this item

    Keywords

    extended family networks; investment; risk-sharing;

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