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Risk Sharing and Network Formation

Author

Listed:
  • Marcel Fafchamps
  • Flore Gubert
  • DIAL

Abstract

Interpersonal relationships have long been suspected of shaping agrarian institutions, probably because weak formal institutions must be supplemented by interpersonal trust. This is particularly true for informal risk sharing, a fundamental risk coping mechanism for the rural poor (e.g. Mark R. Rosenzweig, 1988, Marcel Fafchamps, 1992, Stephen Coate and Martin Ravallion, 1993, Robert Townsend, 1994, Ethan Ligon et al., 2001, Andrew Foster and Mark R. Rosenzweig, 2001).

Suggested Citation

  • Marcel Fafchamps & Flore Gubert & DIAL, 2007. "Risk Sharing and Network Formation," Economics Series Working Papers GPRG-WPS-067, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:gprg-wps-067
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    References listed on IDEAS

    as
    1. Ethan Ligon & Jonathan P. Thomas & Tim Worrall, 1997. "Informal Insurance Arrangements in Village Economies," Keele Department of Economics Discussion Papers (1995-2001) 97/08, Department of Economics, Keele University, revised Oct 2000.
    2. Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
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    More about this item

    Keywords

    Risk-Sharing; Networks; Dyadic Regressions;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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