Risk Pooling and Precautionary Saving in Village Economies
نویسندگان
چکیده
منابع مشابه
Precautionary Saving and Precautionary Wealth
This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.
متن کاملRisk and Return in Village Economies
We study risk and return on farm and non-farm business enterprises in village economies. A risk-sharing benchmark predicts that only aggregate covariate risk contributes to the risk premium. An autarky benchmark predicts that overall fluctuation, idiosyncratic plus aggregate, is the only concern. Empirical findings from semi-urban and rural Thai households with extensive family networks quantif...
متن کاملHeterogeneity and Risk Sharing in Village Economies.
We show how to use panel data on household consumption to directly estimate households' risk preferences. Specifically, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we then test allowing for this heterogeneity. There is substantial, statistically significant heterogeneity in estimated risk preferences. Full insurance cannot b...
متن کاملRisk and Return in Networked Village Economies
We apply the Consumption-based Asset Pricing Model (CCAPM) of the finance literature to study the risk and return of household business assets in developing economies. Using monthly panel data from a household survey in rural Thailand, we find that higher exposure to aggregate, non-diversifiable risk, as measured by household beta or the co-movement of the return of the individual household ent...
متن کاملPrecautionary Saving and Ambiguity
This paper considers a two period consumption-saving model in which future income is uncertain. If the future income is also ambiguous, in the sense of having multiple priors, then ambiguity attitudes also a¤ect the saving decision. Unlike one-period decision problems, ambiguity attitude does more than just distort the probabilities of the various priors. It also distorts the relative importanc...
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2022
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.4134924