Risk-Sharing and Endogenous Network Formation

Joachim De Weerdt

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

Risk-Sharing and Endogenous Network Formation

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A method is developed for analysing the determinants of network formation. The unit of analysis will be the dyad, a pair of households. Application of the method to data on a small Haya village in rural Tanzania showed that the formation of risk-sharing networks was influenced by kinship, geographical proximity, the number of common friends, clan membership, religious affiliation, and wealth.

Keywords: risk-sharing; network formation; Tanzania; dyads; insurance

Chapter.  7671 words.  Illustrated.

Subjects: Economic Development and Growth

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