Risk Pooling between Households and Risk‐Coping Measures in Developing Countries: Evidence from Rural Bangladesh

Health shocks and consumption smoothing in rural households: Does microcredit have a role to play?

“…Instead they find households rely exclusively on self-insurance in the form of adjustments to grain stocks to smooth out consumption. Park (2006) finds that households who do not live very close to other households do sell off their livestock and other assets when experience a shock.…”

Access to Credits and Erosive or Non-erosive Coping Strategies: An Empirical Analysis in Bangladesh

“…Park (2006) looked into the behaviors of households during an economic hardship depending on the membership status in a neighborhood network and relationship to their neighboring households. He found out that economic shocks are less likely to have lower effect on the behaviors of households pooling risks with others in an informal insurance network than on those who do not belong to any network.…”

“…He evaluated microcredit system in terms of their service during economic shock which helped us to get a more detailed picture of the effect of quasi-formal credits. Cheolsung Park (2006) compared the behavior of rural people in Bangladesh during the shock when they are exposed to the insurance networks and when they are not exposed to any insurance network. He found out that rural people are able to smooth out consumption on their own by taking self-insuring measures or by pooling risks with neighbors or extended families (Park 450).…”

Economic analysis of resilience: A framework for local policy response based on new case studies

“…The implied fragility of the arrangements suggests a heightened need to intervene in the face of 20 See Rothschild and Stiglitz (1970). 21 See, in addition to Udry (1994), Genicot and Ray (2003), Murgai et al (2002), Park (2006), Fafchamps and Lund (2003), and references within these works. The papers in this area cover many different types of community, from Pakistani (Murgai) to Bangladesh (Park) to the Philippines (Fafchamps and Lund) and many others, reviewed in Banerjee and DuFlo's discussion.…”