Insurance in extended family networks

Orazio Attanasio, Costas Meghir and Corina Mommaerts

No 21059, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We investigate partial insurance and group risk sharing in extended family networks. Our approach is based on decomposing income shocks into group aggregate and idiosyncratic components, allowing us to measure the extent to which each component is insured. We apply our framework to extended family networks in the United States by exploiting the unique intergenerational structure of the Panel Study of Income Dynamics. We find that over 60% of shocks to household income are potentially insurable within extended family networks. However, we find little evidence that the extended family provides insurance for such idiosyncratic shocks.

JEL-codes: D12 D31 D91 E21 E24 H31 (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-ias, nep-ltv, nep-mac and nep-pbe
Note: LS PE
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Insurance in Extended Family Networks (2018)
Working Paper: Insurance in extended family networks (2018)
Working Paper: Insurance in Extended Family Networks (2015)
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