Informal Risk-Sharing and Poverty Persistence
An 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.
|Date of creation:||01 Oct 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:csae-wps/2009-19. 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: (Caroline Wise)
If references are entirely missing, you can add them using this form.