Heterogeneity and risk sharing in village economies
By: Pierre-André Chiappori ... [et al.].
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16696; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16696.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model and complement the results with a measure based on optimal portfolio choice.  Among households with relatives living in the same village, full insurance cannot be rejected, suggesting that relatives provide something close to a complete-markets consumption allocation.  There is substantial heterogeneity in risk preferences estimated from the full-insurance model, positively correlated in most villages with portfolio-choice estimates.  The heterogeneity matters for policy: Although the average household would benefit from eliminating village-level risk, less-risk-averse households who are paid to absorb that risk would be worse off"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 4/21/2011.

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