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dc.contributor.authorKinnan, Cynthia
dc.contributor.authorTownsend, Robert
dc.date.accessioned2012-09-24T20:22:50Z
dc.date.available2012-09-24T20:22:50Z
dc.date.issued2012-05
dc.identifier.issn0002-8282
dc.identifier.issn1944-7981
dc.identifier.urihttp://hdl.handle.net/1721.1/73141
dc.description.abstractKinship networks are beneficial for smoothing consumption and investment, but the channels are not well understood. We study the financing devices used for consumption and investment by Thai households. Households that are connected to banks achieve significantly better consumption smoothing than unconnected households; indirect connections via inter-household borrowing are as effective as direct borrowing. Investment appears to be facilitated by kinship: households with kin in the village display reduced sensitivity of investment to income, while connections to banks do not significantly reduce sensitivity. Kin may act as "implicit collateral," permitting borrowing that would violate repayment constraints in its absence.en_US
dc.description.sponsorshipJohn Templeton Foundationen_US
dc.description.sponsorshipEunice Kennedy Shriver National Institute of Child Health and Human Development (U.S.)en_US
dc.description.sponsorshipNational Science Foundation (U.S.)en_US
dc.description.sponsorshipBill & Melinda Gates Foundation (Consortium on Financial Systems and Poverty grant)en_US
dc.language.isoen_US
dc.publisherAmerican Economic Associationen_US
dc.relation.isversionofhttp://dx.doi.org/10.1257/aer.102.3.289en_US
dc.rightsArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.en_US
dc.sourceAmerican Economic Associationen_US
dc.titleKinship and Financial Networks, Formal Financial Access, and Risk Reductionen_US
dc.typeArticleen_US
dc.identifier.citationKinnan, Cynthia, and Robert Townsend. “Kinship and Financial Networks, Formal Financial Access, and Risk Reduction.” American Economic Review 102.3 (2012): 289–293. Web.en_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Economicsen_US
dc.contributor.approverTownsend, Robert
dc.contributor.mitauthorTownsend, Robert
dc.relation.journalAmerican Economic Reviewen_US
dc.eprint.versionFinal published versionen_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dspace.orderedauthorsKinnan, Cynthia; Townsend, Roberten
dc.identifier.orcidhttps://orcid.org/0000-0002-1528-8102
mit.licensePUBLISHER_POLICYen_US


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