CONSUMPTION AND INVESTMENT IN RESOURCE POOLING FAMILY NETWORKS

This article examines a novel motive for resource pooling in family networks in rural economies: to relax credit constraints and facilitate investment in non-collateraliseable assets for which credit market imperfections are most binding. We thus complement established literatures examining riskshar...

Full description

Saved in:
Bibliographic Details
Published in:The Economic journal (London) 2018-11, Vol.128 (615), p.2613-2651
Main Authors: Angelucci, Manuela, De Giorgi, Giacomo, Rasul, Imran
Format: Article
Language:English
Subjects:
Bond markets
Consumption
Economic models
Economic theory
Family networks
Households
Investments
Kinship
Rural communities
Taxation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This article examines a novel motive for resource pooling in family networks in rural economies: to relax credit constraints and facilitate investment in non-collateraliseable assets for which credit market imperfections are most binding. We thus complement established literatures examining risksharing motives for resource transfers within family networks, as well as motives based on kinship tax obligations. We do so exploiting the Progresa programme data, in which family networks can be identified, households are subject to large exogenous resource inflows, and detailed responses on consumption and an array of investments can be tracked in a household panel over five years.
ISSN:0013-0133
1468-0297
DOI:10.1111/ecoj.12534