TY  - BOOK
AU  - Samphantharak,Krislert
AU  - Townsend,Robert
ED  - National Bureau of Economic Research.
TI  - Risk and Return in Village Economies
T2  - NBER working paper series
PY  - 2013///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - December 2013; Hardcopy version available to institutional subscribers
N2  - This paper provides a theory-based empirical framework for understanding the risk and return on productive capital assets and their allocation across activities in an economy characterized by idiosyncratic and aggregate risk and thin formal markets for real and financial assets. We apply our framework to households running business enterprises in Thai villages with extensive networks, taking advantage of panel data: income, assets, consumption, gifts, and loans. We decompose risk and estimate the risk premia faced by households, distinguishing aggregate risk from idiosyncratic, potentially diversifiable risk. This distinction matters for estimating measures of underlying productivity and has important policy implications
UR  - https://www.nber.org/papers/w19738
UR  - http://dx.doi.org/10.3386/w19738
ER  -