Publications [#325428] of Attila Ambrus

Journal Articles

1. Ambrus, A; Mobius, M; Szeidl, A, Consumption Risk-Sharing in Social Networks, American Economic Review, vol. 104 no. 1 (January, 2014)
   (last updated on 2024/04/25)

   Abstract:
   We develop a model in which connections between individuals serve as social collateral to enforce informal insurance payments. We show that: (i) The degree of insurance is governed by the expansiveness of the network, measured with the per capita number of connections that groups have with the rest of the community. "Two-dimensional" networks?like real-world networks in Peruvian villages?are sufficiently expansive to allow very good risk-sharing. (ii) In second- best arrangements, insurance is local: agents fully share shocks within, but imperfectly between endogenously emerging risk-sharing groups. We also discuss how endogenous social collateral affects our results.