Heterogeneity and risk sharing in village economies

• 成果类型: Article
• 署名作者: Chiappori, Pierre-Andre; Samphantharak, Krislert; Schulhofer-Wohl, Sam; Townsend, Robert M.
• 署名单位: Columbia University; University of California System; University of California San Diego; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; Massachusetts Institute of Technology (MIT)
• 刊物名称: QUANTITATIVE ECONOMICS
• ISSN/ISSBN: 1759-7323
• DOI: 10.3982/QE131
• 发表日期: 2014
• 页码: 1-27
• 关键词: Risk preferences; Heterogeneity; complete markets; insurance; D12; D14; D53; D81; D91; G11; O16

摘要

We show how to use panel data on household consumption to directly estimate households' risk preferences. Specifically, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we then test allowing for this heterogeneity. There is substantial, statistically significant heterogeneity in estimated risk preferences. Full insurance cannot be rejected. As the risk-sharing as-if-complete-markets theory might predict, estimated risk preferences are unrelated to wealth or other characteristics. The heterogeneity matters for policy: Although the average household would benefit from eliminating village-level risk, less-risk-averse households that are paid to absorb that risk would be worse off by several percent of household consumption.