Implications of Endogenous Group Formation for Efficient Risk‐Sharing
Bibliographic Data
| ID | 9704404 |
|---|---|
| Authors | Tessa Bold (New College, Oxford, corresponding author) |
| Year | 2009 |
| Volume | 119 |
| Issue | 536 |
| Pages | 562-591 |
| Publication date | 2009-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2008.02245.x |
| OpenAlex | W2085838161 |
| Language | EN |
| Citations received | 3 |
| References cited | 36 |
The existing literature on sub-game perfect risk-sharing suffers from a basic inconsistency. While a group of size "n" is able to coordinate on a risk-sharing outcome, it is assumed that deviating subgroups cannot. I relax this assumption and characterise the optimal contract among all coalition-proof history-dependent contracts. This alters the predictions of the standard dynamic limited commitment model. I show that the consumption of constrained agents depends on both the history of shocks and its interaction with the current income of other constrained agents. From this, I derive a formal test for the presence of endogenous group formation under limited commitment. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009
Group (periodic table · Law and economics · Political science · Sociology · Agricultural risk and resilience · Financial Literacy, Pension, Retirement Analysis · Income, Poverty, and Inequality
Informal Insurance Arrangements with Limited Commitment
Coalition-Proof Nash Equilibria I. Concepts
On the Theory of Infinitely Repeated Games with Discounting
The equity premium
Risk and Insurance in a Rural Credit Market
Risk and Insurance in Village India
Implications of Efficient Risk Sharing without Commitment
Household Intertemporal Behaviour
Household consumption smoothing through ethnic ties
Reciprocity without commitment
Risk-sharing networks in rural Philippines
Localized and incomplete mutual insurance
Risk-sharing networks and insurance against illness
Self-Enforcing Wage Contracts
In Sickness and in Health
Full Insurance in the Presence of Aggregate Uncertainty
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,25 |
| Citation span | 2014 - 2021 (8) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 3 |