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Risk Sharing and Public Transfers

Stefan Dercon and Pramila Krishnan

Economic Journal, 2003, vol. 113, issue 486, C86-C94

Abstract: We use public transfers in the form of food aid to test for the presence of risk sharing arrangements at the village level in rural Ethiopia. We reject perfect risk-sharing, but find evidence of partial risk-sharing via transfers. There is also evidence consistent with crowding out of informal insurance linked to food aid programmes. Copyright Royal Economic Society 2003

Date: 2003
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