Ambrus, Attila; Mobius, Markus; Szeidl, Adam - In: American Economic Review 104 (2014) 1, pp. 149-82
We develop a model in which connections between individuals serve as social collateral to enforce informal insurance payments. We show that: (i) The degree of insurance is governed by the expansiveness of the network, measured with the per capita number of connections that groups have with the...