Date
2007-05
Dewey
Croissance et développement économiques
Sujet
Philippines; Risk management in business; income; management; social networks; social groups; rural poor; income
JEL code
O15; O18; O53; D85; D81
Journal issue
The American Economic Review
Volume
97
Number
2
Publication date
05-2007
Article pages
75-79
Publisher
American Economic Association
Author
Gubert, Flore
Fafchamps, Marcel
Type
Article accepté pour publication ou publié
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.