| 来源类型 | Working Paper
|
| 规范类型 | 报告
|
| DOI | 10.3386/w20429
|
| 来源ID | Working Paper 20429
|
| Risk Sorting, Portfolio Choice, and Endogenous Informal Insurance |
| Xiao Yu Wang
|
| 发表日期 | 2014-08-28
|
| 出版年 | 2014
|
| 语种 | 英语
|
| 摘要 | Heterogeneously risk-averse individuals who lack access to formal insurance build and use relationships with each other to manage risk. I study the formation of these relationships. I show that the composition of equilibrium groups under pairwise matching and when group size is endogenous is determined by a trade-off in expected return and variance of return (captured by the coefficient of variation) across differentially risky productive opportunities, even when output distributions are skewed and have infinitely-many nonzero cumulants. This has important policy implications. For example, a policy which ignores the equilibrium response of informal institutions may exacerbate inequality and hurt most those it intended to help: a reduction in aggregate risk may lead to an increase in risk borne by the most risk-averse individuals, as the least risk-averse abandon their roles as informal insurers. Understanding informal occupations as equilibrium choices as opposed to exogenous assignments generates insights into the role played by endogenous insurance relationships in shaping informal firm structure and the development of entrepreneurship. |
| 主题 | Microeconomics
; Game Theory
; Development and Growth
; Development
|
| URL | https://www.nber.org/papers/w20429
|
| 来源智库 | National Bureau of Economic Research (United States)
|
| 引用统计 |
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| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/578102
|
推荐引用方式
GB/T 7714 |
Xiao Yu Wang. Risk Sorting, Portfolio Choice, and Endogenous Informal Insurance. 2014.
|
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