Article
Economics
Jeremy Clark, John Spraggon
Summary: An experimental study on group liability microfinance found that optional revenue sharing significantly increases repayment rates for high-risk borrowers, but most gains are lost if borrowers can renege on revenue sharing agreements.
Article
Economics
Prachi Jain, Margaret J. Lay
Summary: The study suggests that informal transfers are more likely to be influenced by risk-sharing rather than inequity aversion, as individuals are equally likely to give transfers from high-income to low-income partners when income is due to chance as when both participants exert effort to increase expected income. Transfers are less likely when one or both partners do not exert effort.
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
(2021)
Article
Economics
Heath Henderson, Arnob Alam
Summary: The risk-sharing network in the Tanzanian village of Nyakatoke displays small-world phenomenon, preferential attachment, and assortative mixing. Compared to simulated networks with alternative structural traits, the Nyakatoke network demonstrates optimal or near-optimal performance across multiple dimensions, especially in its ability to withstand various perturbations.
EMPIRICAL ECONOMICS
(2022)
Article
Ecology
Meike Will, Juergen Groeneveld, Friederike Lenel, Karin Frank, Birgit Mueller
Summary: Effective risk management is crucial for strengthening the resilience of vulnerable communities. While insurance products can contribute to this goal, the affordability issue limits their coverage, particularly in low-income countries. In such cases, informal risk-sharing within social networks plays a critical role, but it may fail to reach households in need due to income inequality and lack of connections to resourceful households.
ECOLOGICAL ECONOMICS
(2023)
Article
Economics
Tessa Bold, Tobias Broer
Summary: The study quantitatively evaluates a model of insurance with limited commitment, where contracts must be immune to deviations by subcoalitions, leading to endogenous group sizes. Comparing the model's predictions to panel data from rural Indian villages, it is found that the model not only predicts a realistic degree of insurance but also captures evidence on group size and individual consumption response to income changes.
JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
(2021)
Article
Economics
Renaud Bourles, Yann Bramoulle, Eduardo Perez-Richet
Summary: Altruism networks play a significant role in risk sharing, providing efficient insurance. The presence of bridges and the average path length in the network affect the effectiveness of risk sharing, while connected altruism networks offer better insurance against large shocks.
JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
(2021)
Article
Public, Environmental & Occupational Health
Nuo Chen, Jing Bai, Stephen Nicholas, Elizabeth Maitland, Jialong Tan, Jian Wang
Summary: The study found that participants had a strong preference for government involvement, extensive benefit packages, high reimbursement ratio, and compensation for pre-existing conditions. They were also indifferent between deductible levels of CNY15,000 and CNY18,000, but preferred CNY15,000 over CNY20,000. An increase in premium significantly decreased the utility of private health insurance.
FRONTIERS IN PUBLIC HEALTH
(2022)
Article
Economics
Luigi Bocola, Guido Lorenzoni
Summary: Financial crises occur because firms and financial institutions are highly exposed to aggregate shocks. We propose a theory explaining these exposures, where entrepreneurs issue state-contingent claims to consumers. Despite the option to hedge negative shocks, entrepreneurs do not always do so due to the high costs of insurance and the harm inflicted on consumers. This feedback mechanism results in inefficiently high risk exposure for entrepreneurs.
JOURNAL OF POLITICAL ECONOMY
(2023)
Article
Operations Research & Management Science
Qing Zhang, Juan Li, Tiaojun Xiao
Summary: This article investigates the motivation of technology sharing among farmers and provides suggestions on contract design. The study finds that under a fixed-fee contract, both farmers benefit when the technology sharing ratio exceeds a threshold. Under a royalty-fee contract, the licensor only shares technology with similar production costs. In a supply chain setting, a win-win outcome is possible under a fixed-fee contract if the technology sharing ratio is below a certain threshold.
ANNALS OF OPERATIONS RESEARCH
(2022)
Article
Plant Sciences
Yan Sun
Summary: This study proposes an optimization-based weather-yield model to reduce basis risk in weather-based index insurance. By incorporating monthly explanatory weather indices and extreme weather indices, this model captures the monthly variation and additional extreme weather effects during the growing season. The study demonstrates the advantages of this modeling approach and the effectiveness of weather index-based insurance in reducing basis risk and revenue risk using county-level yield data for mid-season rice in Anhui province, China.
FRONTIERS IN PLANT SCIENCE
(2022)
Article
Business, Finance
Matthias Efing, Harald Hau, Patrick Kampkoetter, Jean-Charles Rochet
Summary: This study argues that risk sharing is the motivation behind the bankwide structure of bonus pay. By analyzing payroll data from all functional divisions of Austrian, German, and Swiss banks, the study uncovers several empirical patterns in bonus pay that are difficult to explain solely with incentive theories but support the importance of risk sharing.
REVIEW OF FINANCIAL STUDIES
(2022)
Article
Environmental Sciences
Edel Doherty, Sinead Mellett, Daniel Norton, Thomas K. J. McDermott, Denis O' Hora, Mary Ryan
Summary: Agriculture is highly vulnerable to climate change, with insurance seen as an efficient means of financial security but potentially leading to negative impacts. Irish farmers prefer multi-annual insurance, weather-indexed insurance, and affordable coverage.
JOURNAL OF ENVIRONMENTAL MANAGEMENT
(2021)
Article
Geosciences, Multidisciplinary
Xihui Wang, Mengzhe Zhou, Jianfang Shao
Summary: Multi-region catastrophe insurance solves the problem of mismatched interest between insurance companies and disaster-affected regions, and promotes system implementation through risk-sharing mechanisms and government subsidies.
INTERNATIONAL JOURNAL OF DISASTER RISK REDUCTION
(2023)
Article
Management
Di Bu, Yin Liao
Summary: The study found that village credit information sharing has a positive impact on individual microloan repayment, especially among male and older borrowers. Mechanism analysis revealed that the publicly disclosed blacklist of delinquents affects borrowers' repayment behaviors.
MANAGEMENT SCIENCE
(2022)
Article
Business
Lei Shi, Yujia He, Masamitsu Onishi, Kiyoshi Kobayashi
Summary: Construction projects are filled with risks that should be shared by both owners and contractors. The principal-agent theory suggests that letting a risk-neutral contractor assume all risks is optimal, but this may lead to biased incentives. It is important to find an optimal risk-sharing strategy to coordinate both parties for efficient outcomes.
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT
(2021)
