condition derived herein, observable shocks are fully shared. The model, therefore, can generate the low degree of risk sharing …

consumption volatility. A household's currently observed poverty status might therefore not be a good indicator of the household …'s general poverty risk, or in other words its vulnerability to poverty. Although several measurements to analyze vulnerability …

-space approach of Arrow-Debreu. A host of new interesting economic issues emerge. First, risk averse agents can attempt to insure … themselves through markets or through mutual insurance within a multi-member group, say a household, by pooling resources within … an open question. Second, one may ask more specifically what is the role of social groups for risk sharing and risk …