Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71726
Authors: 
Grimm, Michael
Hartwig, Renate
Lay, Jann
Year of Publication: 
2013
Series/Report no.: 
Discussion Paper Series, Forschungsinstitut zur Zukunft der Arbeit 7229
Abstract: 
Sharing is a norm in many societies. We present a theoretical model on the trade-off between sharing and investment which we test on data from tailors in Burkina Faso. The empirical results support the idea that there are two behavioural patterns: entrepreneurs following an 'insurance regime' comply with sharing norms, are insured but reduce investment in their firm, whereas entrepreneurs in the 'growth regime' are not insured but take undistorted investment decisions. The choice of regime depends on the redistributive pressure, the willingness to take risk, and the return on investment.
Subjects: 
forced solidarity
informal insurance
investment
micro and small enterprises
sharing
Sub-Saharan Africa
JEL: 
D13
D22
D92
O12
O43
Document Type: 
Working Paper

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