In this paper, we study the determinants of the value of informal risk sharing groups. In particular, we look at the effects of heterogeneity of preferences and of limited commitment constraints that restrict feasible allocations differently if individuals can deviate form risk sharing...

The study of optimal risk sharing, either at the aggregate level or at the village level, has been deeply renewed by the contributions of empirical papers mostly rejecting the existing theories. The rejection of the Permanent Income Hypothesis and of the Complete Markets Hypothesis led to model...

Since the 1980s, privatization of formerly state-owned firms has been extensively implemented by governments across Latin America. Despite the fact that most evaluations of the process fail to find significant adverse welfare effects, there has been a strong surge in public discontent with such...