Data and Code for "Propagation and Insurance in Village Networks"

Principal Investigator(s): View help for Principal Investigator(s) Cynthia Kinnan, Tufts University; Krislert Samphantharak, UCSD; Robert Townsend, MIT; Diego Vera-Cossio, IADB

Version: View help for Version V1

Name	File Type	Size	Last Modified
analysis			10/13/2023 10:46:AM
auxdata			10/13/2023 10:46:AM
raw			10/13/2023 11:22:AM

Project Description

Summary: Firms in developing countries are embedded in supply chains and labor networks. These linkages may propagate or attenuate shocks. Using panel data from Thai villages, we document three facts: as households facing idiosyncratic shocks adjust their production, these shocks propagate to other households on both the production and consumption sides; propagation is greater via labor than supply chain links; and shocks in denser networks and to more central households propagate more, while access to formal or informal insurance reduces propagation. Social benefits from expanding safety nets may be higher than private benefits.

Scope of Project

Subject Terms: Entrepreneurship; Risk sharing; Propagation; Production networks; Firms

JEL Classification:
      D13 Household Production and Intrahousehold Allocation
      D22 Firm Behavior: Empirical Analysis
      I15 Health and Economic Development
      O10 Economic Development: General
      Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

Geographic Coverage: Thailand

Universe: Households in peri-urban and rural Thailand

Data Type(s): observational data; program source code

Methodology

Sampling: Our data come from the Townsend Thai Monthly Survey, which covers 16 villages in Northern and Central Thailand. The sample includes approximately 45 households per village, representing on average 42% of the village population

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Published Versions

V1 [2023-12-12]

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