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Insurance Against Poverty$
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Stefan Dercon

Print publication date: 2004

Print ISBN-13: 9780199276837

Published to Oxford Scholarship Online: January 2005

DOI: 10.1093/0199276838.001.0001

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Risk-Sharing and Endogenous Network Formation

Risk-Sharing and Endogenous Network Formation

(p.197) 10 Risk-Sharing and Endogenous Network Formation
Insurance Against Poverty

Joachim De Weerdt

Oxford University Press

A method is developed for analysing the determinants of network formation. The unit of analysis will be the dyad, a pair of households. Application of the method to data on a small Haya village in rural Tanzania showed that the formation of risk-sharing networks was influenced by kinship, geographical proximity, the number of common friends, clan membership, religious affiliation, and wealth.

Keywords:   risk-sharing, network formation, Tanzania, dyads, insurance

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