Kinnan, Cynthia; Krislert Samphantharak; Townsend, Robert M. - 2020
In village economies, insurance networks are key to smoothing shocks, while production networks can propagate them. The … interplay of these networks is crucial. We show that a significant health expenditure shock to one household propagates to other … linked households via supply-chain and labor networks. Imperfectly insured households adjust production decisionscutting …