Propagation and Insurance in Village Networks
Cynthia Kinnan,
Krislert Samphantharak,
Robert Townsend and
Diego Vera Cossio
No 28089, NBER Working Papers from National Bureau of Economic Research, Inc
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 I15 O1 Q12 (search for similar items in EconPapers)
Date: 2020-11
New Economics Papers: this item is included in nep-agr, nep-ias and nep-net
Note: DEV PR
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Citations: View citations in EconPapers (2)
Published as Cynthia Kinnan & Krislert Samphantharak & Robert Townsend & Diego Vera-Cossio, 2024. "Propagation and Insurance in Village Networks," American Economic Review, vol 114(1), pages 252-284.
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