Targeting and Informal Insurance

Ethan Ligon

No DP2002-08, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The standard method of testing for efficient risk-sharing in village economies does not allow one to identify vulnerable households, only to make statements about the average risk in the village, or of sub-groups identifiable on the basis of observables. Here, by working directly with inter-household consumption correlations we are able to identify households, which are probably exposed to unusually high amount of idiosyncratic risk. An obvious use for this identifying information involves targeted interventions to help those households.

Keywords: Informal sector; Insurance; Risk; Risk management (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (8)

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Working Paper: Targeting and Informal Insurance (2004)
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