How should researchers investigate the true role of people’s self-reported social links in getting a job, getting a favour or simply getting information? This column introduces a framework to estimate the process by which people’s self-reported social links are formed. The authors show that different link formation rules predict the different network structures seen in data from a risk-sharing survey in a Tanzanian village and the diffusion of agricultural knowledge in the Indian state of Maharashtra.
Margherita Comola, Marcel Fafchamps, Tuesday, November 4, 2014
Mathias Hoffmann, Bent E. Sørensen, Friday, November 9, 2012
How do members of existing monetary unions share risk? Drawing on a decade of research, this column argues that fiscal transfers in fact make a limited contribution to economic coherence. In the context of Europe’s current crisis, the evidence suggests that unfinished capital market integration must be completed if we wish to see adequate and effective risk sharing.
Sebnem Kalemli-Ozcan, Bent E. Sørensen, Wednesday, May 23, 2012
News reports today are full of negative stories on the Eurozone. This column presents evidence of a much-overlooked benefit. The common currency has led to increased financial integration and in turn increased risk sharing, which helps to significantly reduce output shocks. Those arguing for a break up of the Eurozone should take note.
Torben M. Andersen, Monday, September 27, 2010
Springing from the debate over the Danish flexicurity system, the author of CEPR DP8025 outlines a model in which incentive effects of tax-financed unemployment benefits are balanced by direct and indirect insurance benefits. Such benefits may increase labour market flexibility by making job searches less risky for workers.
Robert Flood, Akito Matsumoto, Nancy P. Marion, Tuesday, January 12, 2010
Financial globalisation makes it easier for individuals to trade financial assets, and that should help them diversify against country-specific risks. But empirical support for improved international risk sharing is limited. This column says that there is evidence of improved international risk sharing, and it comes mostly from the convergence in rates of consumption growth among countries.