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The Formation of Risk Sharing Networks.

Abstract:

This paper examines the formation of risk sharing networks in the rural Philippines. We find that geographic proximity--possibly correlated with kinship--is a major determinant of mutual insurance links among villagers. Age and wealth differences also play an important role. In contrast, income correlation and differences in occupation are not determinants of network links. Reported network links have a strong effect on subsequent gifts and loans. Gifts between network partners are found to r...

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Journal:
Journal of Development Economics
Volume:
83
Publication date:
2007-01-01
URN:
uuid:b7dcf642-420b-4283-b51d-0ed0e0204b20
Local pid:
oai:economics.ouls.ox.ac.uk:10871
Language:
English

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