Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/52761
Authors: 
Dercon, Stefan
Krishnan, Pramila
Year of Publication: 
2003
Series/Report no.: 
WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2003/09
Abstract: 
Households in developing countries use a variety of informal mechanisms to cope with risk, including mutual support and risk-sharing. These mechanisms cannot avoid that they remain vulnerable to shocks. Public programs in the form of food aid distribution and food-for-work programs are meant to protect vulnerable households from consumption and nutrition downturns by providing a safety net. In this paper we look into the extent to which food aid helps to smooth consumption by reducing the impact of negative shocks, taking into account informal risk-sharing arrangements. Using panel data from Ethiopia, we find that despite relatively poor targeting of the food aid, the programs contribute to better consumption outcomes, largely via intra-village risk sharing.
Subjects: 
risk-sharing
informal insurance
safety nets
food aid
JEL: 
D91
I38
O17
ISBN: 
9291904015
Document Type: 
Working Paper

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