Propagation and insurance in village networks
By: Kinnan, C., Samphantharak, K. Townsend, R. and Cossio, D.V
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Material type: 
BookPublisher: The American Economic Review Description: 114(1), Jan, 2024: p.252-284.
In:
The American Economic ReviewSummary: 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.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/aer.20220892
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 114(1), Jan, 2024: p.252-284 | Available | AR131334 |
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.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/aer.20220892
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