Saved in:
| Main Author: | |
|---|---|
| Format: | Artículo científico |
| Language: | en |
| Published: |
Universidad de los Andes
2006
|
| Subjects: | |
| Online Access: | https://www.redalyc.org/articulo.oa?id=169114683002 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Table of Contents:
- Income Volatility, Risk-Coping Behavior and Consumption Smoothing Mechanisms in Developing Countries: A Survey Javier Eduardo Baez Multidisciplinarias (Ciencias Sociales) Risk consumption coping behavior income volatility informal insurance This paper provides a review of the general concepts and infl uential fi ndings of empirical research on risk-coping behavior and consumption smoothing arrangements in rural economies of developing countries. Low-income individuals live with high levels of risk and limited access to formal fi nancial systems for credit and insurance. In general, the evidence indicates that their informal mechanisms to mitigate risk play an important role in partially protecting their consumption. However, these alternatives do not allow rural households to achieve an optimal allocation of risk across time and income cycles and are costly on equity grounds. In addition, risks that remain uninsured seem to have adverse long term welfare consequences. Public interventions can play a signifi cant role in improving the income security of rural households. In doing so, it is crucial to have a good understanding of the causes and not simply the symptoms of informal risk-coping behavior and its social welfare implications. 2006 artículo científico 0120-3584 https://www.redalyc.org/articulo.oa?id=169114683002 en http://www.redalyc.org/revista.oa?id=1691 Desarrollo y Sociedad application/pdf Universidad de los Andes Desarrollo y Sociedad (Colombia) Num.58