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...

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...

We look at liquidity constraints and the financing of household investment in fixed assets. We find that rural households in our sample, especially the poor, seem to face liquidity constraints. The constraints are partially mitigated by kinship networks in the village. When we further analyze...