Journal Article Informal Insurance Arrangements with Limited Commitment: Theory and Evidence from Village Economies Get access Ethan Ligon, Ligon University of California, Berkeley Giannini Foundation Search for other works by this author on: Oxford Academic Google Scholar Jonathan P. Thomas, Thomas St. Andrews Tim Worrall Keele The Review Economic Studies, Volume 69, Issue 1, January 2002, Pages 209–244, https://doi.org/10.1111/1467-937X.00204 Published: 01 2002 history Received: March 1999...

Journal Article Measuring Vulnerability Get access Ethan Ligon, Ligon University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar Laura Schechter The Economic Journal, Volume 113, Issue 486, March 2003, Pages C95–C102, https://doi.org/10.1111/1468-0297.00117 Published: 10 2003

Journal Article Risk Sharing and Information in Village Economies Get access Ethan Ligon University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar The Review Economic Studies, Volume 65, Issue 4, October 1998, Pages 847–864, https://doi.org/10.1111/1467-937X.00071 Published: 01 1998 history Received: May 1997 Accepted: December

The availability of digital payment technologies (such as internet banking, mobile money, and credit/debit cards) has rapidly increased in the developing world, is a cornerstone for financial inclusion initiatives countries. Despite significant efforts to promote payments, rates adoption remain modest some low-income In particular, rate India remains low despite adoption. this paper, we consider possible reasons among merchants Jaipur, with small fixed-location store enterprises. Using...

Recent work on consumption allocations in village economies finds that idiosyncratic variation is systematically related to income, thus rejecting the hypothesis of full risk-pooling. We attempt explain these observations by adding limited commitment as an impediment provide a general dynamic model and completely characterise efficient informal insurance arrangements constrained commitment, test using data from three Indian villages. find can fully response but it fails distribution across...

Abstract This article examines the structure of contractual relations between growers and first handlers in California fruit vegetable markets. Evidence on existing structures is collected from on‐site interviews a small mail survey market intermediaries who contract with independent growers. Four generic instruments are identified—input control, field visits, quality measurement, residual price risk—which used to coordinate which help alleviate information asymmetries align incentives...

Over the last several decades, World Bank has accumulated a large number of datasets from countries which are based on household-level surveys, statistically representative populations those countries, and include data non-durable expenditures. These expenditures can be used to measure economic welfare - indeed, this kind measurement is chief reason d'etre collection survey data. Though micro-data these surveys not generally available, provides aggregate by decile for many countries....

Abstract Risk‐averse farmers in the produce industry grow a product whose market price is often quite unpredictable. Shippers or other intermediaries shield farmer from much of this risk; however, actual contracts between growers and shippers vary considerably across commodities residual risk face. We hypothesize that imperfect quality measurement results moral hazard problem, provides additional information regarding quality. As consequence, an efficient contract does not all idiosyncratic...

Over the last several decades, World Bank has accumulated a large number of datasets from countries which are based on household-level surveys, statistically representative populations those countries, and include data non-durable expenditures. These expenditures can be used to measure economic welfare -- indeed, this kind measurement is chief raison d'etre collection survey data. Though micro-data these surveys not generally available, provides aggregate by decile for many countries....

Abstract In this paper we focus on mechanisms of coordination in agricultural contracts. Our approach is intended to advance understanding social relations production and distribution power agrofood systems. Through an analysis contracts between farmers intermediaries (e.g., processors, shippers, consignment agents) for California fruits vegetables, identify three functions contracts: they help coordinate production, provide incentives (and penalties) induce particular behaviors, allow share...

A number of researchers have recently proposed a variety different 'vulnerability' measures designed to capture the welfare consequences risk for poor households, and also approaches estimating these various household vulnerability. However, it's possible 'mix-and-match' estimators measures. Here we conduct Monte Carlo experiments explore performance with measures, under assumptions regarding underlying economic environment.

Traditional poverty measures neglect several important dimensions of household welfare. In this paper we construct a measure ‘vulnerability’ which allows us to quantify the welfare loss associated with as well any variety different sources uncertainty. Applying our panel dataset from Bulgaria in 1994, find that and risk play roughly equal roles reducing Aggregate shocks are more than idiosyncratic risk, but households headed by an employed, educated male less vulnerable aggregate other households.

What motivates people in rural villages to share? We first elicit a baseline level of sharing using standard, anonymous dictator game. Then variants the game that allow for either revealing dictator's identity or allowing choose recipient, we attribute variation three dierent motives. The these, directed altruism, is related preferences, while remaining two are incentive-related (sanctions and reciprocity). observe high average levels our treatment, across individuals depends importantly on...

Rates of long-run economic growth are not independent across countries. To account for this dependence we decompose the spatial covariance function rates into a each country's own observable characteristics, its unobservable and cross-country spillovers. We use original data on distance to structure observed variation in countries' long term rates. estimate magnitude interdependence among nations, give nonparametric characterization relationship between These spillovers turn out be quite...

Much recent empirical work on intra-household allocation uses the axiomatic Nash Bargaining model to make predictions about how distribution of consumption within household will respond individuals' income shocks. However, one basic axioms underlying this approach is that allocations be Pareto optimal, so forward-looking, risk adverse members ought expected smooth away any such response shocks-Pareto optimality seems too strong in a dynamic setting. In paper we use explicitly framework and...

Abstract Relative performance schemes such as tournaments are commonly used in markets for a variety of livestock and processing commodities, while explicit versions these rarely fresh fruits vegetables specialty grains. We show how contracts latter commodities do fact provide relative incentives, albeit indirectly, via payment mechanism that depends on market prices. In contracts, compensation is often an increasing function revenue; this implements scheme by making each grower's his own...

Using data on individual consumption expenditures from a sample of farm households in the Philippines, we construct direct test risk-sharing implications collective household model. We are able to contrast efficient outcomes predicted by model with might expect environments which food delivers not only utils, but also nutrients affect future productivity. Finally, each these two models third, involving hidden action problem within household; this case, provision incentives implies that...