Propagation and Insurance in Village Networks

Cynthia Kinnan, Krislert Samphantharak, Robert Townsend and Diego Vera-Cossio

American Economic Review, 2024, vol. 114, issue 1, 252-84

Abstract: Firms in developing countries are embedded in supply chains and labor networks. These linkages may propagate or attenuate shocks. Using panel data from Thai villages, we document three facts: as households facing idiosyncratic shocks adjust their production, these shocks propagate to other households on both the production and consumption sides; propagation is greater via labor than supply chain links; and shocks in denser networks and to more central households propagate more, while access to formal or informal insurance reduces propagation. Social benefits from expanding safety nets may be higher than private benefits.

JEL-codes: D13 D22 G22 I10 L14 L26 O10 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/aer.20220892 (application/pdf)
https://doi.org/10.3886/E193220V1 (text/html)
https://www.aeaweb.org/doi/10.1257/aer.20220892.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/aer.20220892.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Propagation and Insurance in Village Networks (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:114:y:2024:i:1:p:252-84

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/aer.20220892

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().