Risk taking and the quality of informal insurance
Subtitle: gambling and remittances in thailand
By: Douglas L. Miller, Anna Paulson.
Contributors: Paulson, Anna L.; Federal Reserve Bank of Chicago. Research Dept.
Series: Working paper series -- WP-2007-01; Working paper series (Federal Reserve Bank of Chicago. Research Dept. : Online) -- WP-2007-01.
Publisher: Federal Reserve Bank of Chicago
Published: 2007
Place of publication: [Chicago, Ill.]
Language: eng
Format: Electronic resource
Description: "More than 35% of Thai households either give or receive remittances, and remittances account for about one-third of the income of the receiving households.  Remittance relationships may be an important source of protection against adverse events for the individuals involved.  This paper provides evidence that remittances behave in a way that is consistent with insurance: they are sensitive to shocks to regional rainfall and they respond to household level events.  The paper goes on to consider how the quality of insurance that is offered through remittances affects household risk taking behavior.  Specifically, we show that the likelihood and the amount of gambling increase with the quality of informal insurance.  The findings suggest that households who are more insured shift their portfolios toward riskier investments"--Federal Reserve Bank of Chicago web site.
Notes: Title from PDF file as viewed on 5/24/2007.

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