In this paper, we study the determinants of the value of informal risk sharing groups. In particular, we look at the … if individuals can deviate form risk sharing agreements in coalitions or not. We test empirically several predictable … size of risk sharing groups can be rejected or that only imperfect risk sharing is obtained within the village because of …

macroeconomic and political uncertainty. Demand for macroeconomic shock insurance was high; 36.7 percent of microentrepreneurs in … the treatment group purchased insurance. However, purchasing insurance does not change the likelihood that a business … that, contrary to what they profess, macroeconomic and political risk is not inhibiting the investment behavior of …

Can public insurance through redistributive income taxation improve the allocation of risk in an economy in which … the first place. If risk sharing is incomplete because some insurance markets are missing for model-exogenous reasons (as … of risk. If instead private insurance markets exist but their use is limited by the absence of complete enforcement (as …

This Paper uses panel data on household consumption and income to evaluate the degree of insurance to income shocks … cases of self-insurance and the complete markets assumption. We assess the degree of insurance over and above self-insurance … conventional demand analysis rather than reduced form imputation procedures. Our results point to some partial insurance but reject …

The full insurance hypothesis states that shocks to the firm's performance do not affect workers' compensation. In … principal-agent models with moral hazard, firms trade off insurance and incentives to induce workers to supply the optimal level … productivity but insure workers only partially against permanent shocks. Risk-sharing considerations can account for about 10% of …

The consequences of business cycle contingencies in unemployment insurance systems are considered in a search …-matching model allowing for shifts between "good" and "bad" states of nature. We show that not only is there an insurance argument …

's risk-aversion. This Paper extends the moral hazard model to the case when the agent's risk-aversion is his private … incentives always decreases with risk-aversion. We also characterize the relationship between the outside option and the optimal … contracts. We then apply our results to insurance, managerial incentive pay and corporate governance. …

We provide empirical evidence that risk sharing enhances specialization in production. To the best of our knowledge … market integration (a measure of risk sharing) within each of these groups of regions: the EC countries, the non-EC OECD … Latin America). Finally, we perform a regression of the specialization index on the degree of risk sharing, controlling for …

extant research on consumption insurance find that people face substantial risks that they do not fairly pool. In theory, the … changes in risk to fluctuations in aggregate consumption and (d) the significant impact of incomplete markets on aggregate …