The Role of Social Capital in Risk-Sharing

  title={The Role of Social Capital in Risk-Sharing},
  author={Ivica Petrikova and Dhruv Chadha},
  journal={Journal of South Asian Development},
  pages={359 - 383}
This article evaluates the role of social capital as a risk-coping device in India’s Andhra Pradesh state. Focusing on children’s nutritional outcomes, we test whether social capital serves as an informal insurance mechanism and helps households minimize the negative effect of shocks. We examine the impact of two kinds of income shocks, idiosyncratic and covariant, and the potentially risk-mitigating role of two types of social capital, structural and cognitive, measured first at the individual… 

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