Geographic Network Effects on Risk Sharing in Agrarian Economies: A Spatial Econometric Approach (Preliminary Draft, DO NOT CITE WITHOUT PERMISSION)
نویسنده
چکیده
Much research has been conducted on intra-village consumption smoothing based on the full risk sharing hypothesis. However, the conventional tests ignore geographic network effects, which are potentially important because of transaction costs and spatially covariate shock. Employing spatial panel econometric models, this study extends the empirical tests of full risk sharing to incorporate geographic factors. The model estimation results from household survey data in southern Sri Lanka confirm the existence of spatially correlated unobservables. Also, this paper quantifies the externality from individual income shocks by estimating direct and indirect effects, and finds that income shocks in neighboring households considerably affect consumption, comparing to shocks in the said household.
منابع مشابه
The Impact of Neighborhood on Iran’s Intra-Industry Trade (A Spatial Panel Econometric Approach)
he main purpose of this research is to answer the question that "How neighborhood of Iran's trading partners will have an effect on Iran intra-industry trade? For this purpose, the impact of spatial neighborhood effects of 23 major trade partners on Iran’s intra-industry trade for the period of 1995-2014, has been investigated through Spatial Panel Econometric and Maximum Likelihood Estimator (...
متن کاملSpatial Analysis of Effective Factors on Distribution of Economic: Activities in 14 Zones of Esfahan Municipality
In recent years, the studies of location play a key role in success and stability of economic activities. Location studies are under consideration in both national and international levels. Meanwhile, identification of goals and methods of solving location problems have significant importance. The purpose of this paper is to examine spatial distribution of economic activities in 14 zones of Esf...
متن کاملA Novel Analysis of Risk Sharing Effects on Income Inequality in Informal Insurances
T his study aims to demonstrate that joining in risk sharing network leads to the reduction in incomes volatility. In this respect, income variance for a group of members in an informal insurance is modelled in which income variance prior to joining risk sharing network and after joining is analyzed statistically. A Monte Carlo simulation technique is used to prove the result. To extend an...
متن کاملThe Impact of Maritime Transportation Instability on International Trade Instability: Combination Spatial Panel data Econometric Approach and Wavelet Smoothing
The main objective of this study is to evaluate the impact of maritime transportation instability on international trade instability based on wavelet smoothing and spatial panel data econometric method during the period 1990-2012. The results showed that the spatial effects have an impact on international trade instability. So that a sudden 100 percent increase in international trade in the nei...
متن کاملSpatial Dependence with Common Factors: A Case Study of Growth in Iran's Provinces
The economic components of a geographic region, such as its economic growth, are influenced by the spillover effect of other regions’ economic components. In addition to these spatial dependences, there are common factors, such as oil price, that induce a correlation among the economic variables of the geographic regions. Thus, it is necessary to distinguish between the dependence created by th...
متن کاملNeighborhood Definitions and the Spatial Dimension of Daily Life in Los Angeles
The RAND unrestricted draft series is intended to transmit preliminary results of RAND research. Unrestricted drafts have not been formally reviewed or edited. The views and conclusions expressed are tentative. A draft should not be cited or quoted without permission of the author, unless the preface grants such permission. RAND is a nonprofit institution that helps improve policy and decisionm...
متن کامل