The authors test how well consumption is insured against income risk in a panel of sampled households in rural China. They estimate the risk insurance models by Generalized Method of Moments, treating income and household size as endogenous. Insurance exists for all wealth groups, although the...

Can place of residence make the difference between growth and contraction in living standards for otherwise identical households? The authors test for the existence of spatial poverty traps, using a micro model of consumption growth incorporating geographic externalities, whereby neighborhood...

Poor-area development programs- in which the government transfers extra resources to unusually poor areas -have been widely used to fight poverty. There has been some research on such programs, but little is known about their impact on household living standards over time. The authors address...