Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200305 
Year of Publication: 
2018
Series/Report no.: 
IFS Working Papers No. W18/17
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
We investigate partial insurance and group risk sharing in extended family networks. Our approach is based on decomposing income shocks into group aggregate and idiosyncratic components, allowing us to measure the extent to which each component is insured. We apply our framework to extended family networks in the United States by exploiting the unique intergenerational structure of the Panel Study of Income Dynamics. We find that over 60% of shocks to household income are potentially insurable within extended family networks. However, we find little evidence that the extended family provides insurance for such idiosyncratic shocks.
Document Type: 
Working Paper

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