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This paper investigates the crowding out of informal support among peers by the introduction of formal insurance. We show that the availability of insurance changes people's intrinsic motivation to support others. We report results from a lab-in-the-field experiment conducted in Cambodia. Half...
Persistent link: https://www.econbiz.de/10012947718
In this study we experimentally investigate whether solidarity, which is a crucial base for informal insurance … subjects. The reduction of solidarity is driven by a change in giving behaviour of persons with the risky project. Compared to … to show solidarity is influenced by both the desire for own compensation and attributions of responsibility. Our findings …
Persistent link: https://www.econbiz.de/10012948691
Negative income shocks can either be the consequence of risky choices or random events. A growing literature analyzes the role of responsibility for neediness for informal financial support of individuals facing negative income shocks based on randomized experiments. In this paper, we show that...
Persistent link: https://www.econbiz.de/10012915180
Sharing is a norm in many societies. We present a theoretical model on the trade-off between sharing and investment which we test on data from tailors in Burkina Faso. The empirical results support the idea that there are two behavioural patterns: entrepreneurs following an 'insurance regime'...
Persistent link: https://www.econbiz.de/10013085483
part of the social network. We examine what makes the decision to trust a stranger different from the decision to trust a … implement a binary trust game with hidden action in a lab-in-the-field experiment with residents of an informal housing area in … Cairo. Our results show that trust is higher among friends than among strangers and that higher trust among friends is …
Persistent link: https://www.econbiz.de/10013087403
and a secret saving device on solidarity in risk-sharing groups among rural villagers in the Philippines. Risk is … simulated by a lottery. Risk-sharing is possible in solidarity groups of three and insurance is introduced via less risky … also test for the persistence of this crowding-out of solidarity. We find evidence for a reduction of solidarity by …
Persistent link: https://www.econbiz.de/10013111210
We analyze whether the availability of formal insurance products affects informal solidarity transfers in two … minimizes strategic concerns. The introduction of an insurance treatment alters solidarity in both experiments. We find crowding …
Persistent link: https://www.econbiz.de/10012823295
In December 2005, the Belgian government adopted the law on the Intergenerational Solidarity Pact (ISP) aiming at …
Persistent link: https://www.econbiz.de/10013016379
happiness by itself, it has been observed to show a significant impact on the level of trust among employees. Trust among …
Persistent link: https://www.econbiz.de/10014083456
This study presents new evidence on individual and community-specific determinants of social trust using data from 96 … villages in Bangladesh. We find perceived institutional trust to be positively correlated with stated inter-personal trust. At … the same time, there is significant social distance among various faith groups in our data: both Hindus and Muslims trust …
Persistent link: https://www.econbiz.de/10012983897