Propagation and Insurance in Village Networkst

• 成果类型: Article
• 署名作者: Kinnan, Cynthia; Samphantharak, Krislert; Townsend, Robert; Vera-cossio, Diego
• 署名单位: Tufts University; National Bureau of Economic Research; University of California System; University of California San Diego; Massachusetts Institute of Technology (MIT); Inter-American Development Bank
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20220892
• 发表日期: 2024
• 页码: 252-284
• 关键词: Financial networks; consumption; MARKETS; access; shocks; TRADE

摘要

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