Targeting and Informal Insurance

Ethan Ligon

in Insurance Against Poverty

Published in print November 2004 | ISBN: 9780199276837
Published online January 2005 | e-ISBN: 9780191601620 | DOI:

Series: WIDER Studies in Development Economics

Targeting and Informal Insurance

More Like This

Show all results sharing this subject:

  • Economic Development and Growth


Show Summary Details


This chapter provides a cardinal measure of risk consistent with the ordinal notion of risk developed by Rothschild and Stiglitz (1970). It presents a simple method for decomposing this measure of risk into risks due to aggregate shocks, observable idiosyncratic shocks, and unobservable shocks. It develops an estimator for risk-sharing regressions. The techniques are applied to analyse data from the Indian ICRISAT (International Crops Research Institute for the Semi-Arid Tropics) village studies. It is shown that Aurepalle has the best intra-village insurance, but the least access to mechanisms for smoothing aggregate consumption.

Keywords: risk; poverty; shocks; risk-sharing; insurance

Chapter.  8192 words.  Illustrated.

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.