Risk Sharing in Village Economies Revisited
Tessa Bold
(1)
,
Tobias Broer
(2, 3, 1)
Résumé
We quantitatively evaluate a model of insurance with limited commitment where the requirement that contracts be immune to deviations by subcoalitions makes group size endogenous, as proposed by Genicot and Ray. We compare the model’s predictions to panel data from rural Indian villages. Apart from predicting a realistic degree of insurance, the model captures the evidence along two new dimensions: First, the largest coalition-proof groups are substantially smaller than typical villages. Second, with strong insurance in small groups, individual consumption responds symmetrically to income rises and falls, while alternative models predict strong counterfactual asymmetry.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Résumé |
en
We quantitatively evaluate a model of insurance with limited commitment where the requirement that contracts be immune to deviations by subcoalitions makes group size endogenous, as proposed by Genicot and Ray. We compare the model’s predictions to panel data from rural Indian villages. Apart from predicting a realistic degree of insurance, the model captures the evidence along two new dimensions: First, the largest coalition-proof groups are substantially smaller than typical villages. Second, with strong insurance in small groups, individual consumption responds symmetrically to income rises and falls, while alternative models predict strong counterfactual asymmetry.
|
Titre |
en
Risk Sharing in Village Economies Revisited
|
Auteur(s) |
Tessa Bold
1
, Tobias Broer
2, 3, 1
1
Stockholm University
( 300563 )
- SE-106 91 Stockholm
- Suède
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
|
Licence |
Paternité - Pas d'utilisation commerciale - Pas de modification
|
Public visé |
Scientifique
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2021-12
|
Volume |
19
|
Numéro |
6
|
Page/Identifiant |
3207-3248
|
Mots-clés (JEL) |
|
Domaine(s) |
|
DOI | 10.1093/jeea/jvab043 |
UT key WOS | 000744416200010 |
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