Central Data Catalog

Citation Information

Type Journal Article - Journal of Economic Perspectives
Title Consumption insurance: an evaluation of risk-bearing systems in low-income economies
Author(s)
Volume 9
Issue 3
Publication (Day/Month/Year) 1995
Page numbers 83-10
URL http://econpapers.repec.org/RePEc:aea:jecper:v:9:y:1995:i:3:p:83-102
Abstract
The hypothesis of full risk sharing can be taken to data from low-income countries and evaluate formal and informal financial systems. In many contexts, idiosyncratic risks are high, so credit/insurance arrangements could be beneficial. Statistical tests reveal that households in southern India take advantage of these possibilities; villages in Cote d'Ivoire and countries in Thailand do not do as well. The paper includes an empirical description of the devices used to smooth consumption and a theoretical discussion of private information and incentives on ideal operating systems. The full information and mechanism design frameworks provide benchmarks for policy analysis. Copyright 1995 by American Economic Association.

Related studies

»
»
»