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Risk-Sharing Networks in Rural Philippines.

Abstract:
Using detailed data on gifts, loans, and asset sales, this paper investigates how rural Filipino households deal with income and expenditure shocks. We find that shocks have a strong effect on gifts and informal loans, but little effect on sales of livestock and grain. Mutual insurance does not appear to take place at the village level; rather, households receive help primarily through networks of friends and relatives. Certain shocks are better insured than others. The evidence is consistent with models of quasi-credit where risk is shared within networks through flexible, zero-interest informal loans combined with pure transfers.

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Journal:
Journal of Development Economics More from this journal
Volume:
71
Publication date:
2003-01-01


Language:
English
UUID:
uuid:db3e674d-2ff3-4dd0-84f8-bbf31392cd4f
Local pid:
oai:economics.ouls.ox.ac.uk:10868
Deposit date:
2011-08-16
ARK identifier:

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