Insurance in extended family networks

Document type
Working Paper
Author(s)
Attanasio, Orazio; Meghir, Costas; Mommaerts, Corina
Publisher
Institute for Fiscal Studies
Date of publication
11 July 2018
Subject(s)
Families, Poverty Alleviation Welfare Benefits and Financial Inclusion
Collection
Social welfare
Material type
Reports

Download (757KB )

This framework is based on a joint model of the stochastic process of income and the corresponding behaviour of consumption for an extended family group. Income evolves as a permanent transitory process, as in previous studies. However, this structure has been extended to distinguish between family-aggregate and purely idiosyncratic components of income. This distinction is meaningful for risk sharing, because the group can insure components of shocks that are idiosyncratic to its individual members but is not able to do so for components that are aggregate for the group, thus affecting all members.

More from Social welfare collection

Related to Families

The redistribution and insurance value of welfare reform

Relatively little is known about the roles that taxes and transfers play in redistributing resources and providing insurance across individuals and across the lifecycle. We embed these alternative roles

National insurance and your state pension

The State Pension will change for people who reach State Pension age on or after the 6 April 2016. This means:Women born on or after 6 April 1953.Men born on or after 6 April 1951.This

The value of health insurance: a household job search approach

Working paper on health insurance in Mexico

Water Bill: flood insurance

The Flood Re insurance policy, proposed in the Water Bill, is a way of pooling a small amount of premiums from all households to ensure that flood insurance remains affordable to homes at high risk

More items related to this subject

Related to Institute for Fiscal Studies

Living through later life

Report on retirement and life expectancies

Generation veXed: solving the retirement puzzle

Report on income risks faced by Generation X

Supporting later life

Report on the practical decisions older people may face

More items related to this publisher