Risk Sharing and Network Formation
Gubert, Flore; Fafchamps, Marcel (2007), Risk Sharing and Network Formation, The American Economic Review, 97, 2, p. 75-79. http://dx.doi.org/10.1257/aer.97.2.75
TypeArticle accepté pour publication ou publié
Journal nameThe American Economic Review
American Economic Association
MetadataShow full item record
Abstract (EN)In this article the authors examine the motivation behind the formation of risk pools. They do so by using as suitable study data survey information collected among the rural poor of the Philippines. They discuss the possibility that network formation comes as the result of an attempt to maximize gains derived from shared risk to income within a social group. They note that the most significant benefits of pooled risk occur when individuals are of different occupations and there is a variety of risks faced.
Subjects / KeywordsPhilippines; Risk management in business; income; management; social networks; social groups; rural poor; income
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