This paper presents the first evidence linking directly household consumption profiles to the widely studied institution of sharecropping in developing countries. On the one hand, the theoretical rationale for sharecropping often calls for its risk sharing properties. On the other hand empirical...

We develop and estimate a model of dynamic interactions where conmmitment is limited and contracts are incomplete to explain the patterns of income and consumption in village economies of less developped countries. Households can insure through both formal contracts and informal agreements, that...

In this paper, we study the determinants of the value of informal risk sharing groups. In particular, we look at the effects of heterogeneity of preferences and of limited commitment constraints that restrict feasible allocations differently if individuals can deviate form risk sharing...