Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86333
Authors: 
Pan, Lei
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper 07-014/2
Abstract: 
It is often assumed that transfers received from governments, nongovernment organizations (NGOs), friends and relatives help rural households to pool risk. In this paper I investigate two functions of transfers in Ethiopia: risk pooling and income redistribution. Unlike most of the literature this paper investigates not only whether but also how much risk pooling is achieved. I find evidence that transfers from governments/NGOs play a role in insuring covariant income shocks, (weak) evidence that transfers from friends/relatives insure idiosyncratic income shocks and evidence that transfers target the poor households. However, the contributions of transfers to risk pooling and income redistribution are economically very limited.
Subjects: 
Risk
Insurance
Income redistribution
JEL: 
I38
O17
Document Type: 
Working Paper

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