1 option
Propagation and Insurance in Village Networks / Cynthia Kinnan, Krislert Samphantharak, Robert Townsend, Diego A. Vera Cossio.
- Format:
- Book
- Author/Creator:
- Kinnan, Cynthia.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w28089.
- NBER working paper series no. w28089
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- In village economies, small firm owners facing idiosyncratic shocks adjust production by cutting spending and reducing employment. House-holds with whom they trade inputs and labor scale back their own businesses and reduce consumption. As effects reverberate through local economies, the aggregate indirect adverse effects are larger than the direct effects. Propagation is more severe when transmitted through labor networks as opposed to material supply-chain networks, and goes beyond input-output/sectoral considerations as it varies with network position, closeness to a shocked household, and network density. Participation in gift-giving insurance networks mitigates direct and hence indirect effects. Supply chain and labor networks are fragile as the broken links are not easily replaced, leading to persistent damage. Social gains from better-targeted safety nets are substantially higher than private gains.
- Notes:
- Print version record
- November 2020.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.