Central Data Catalog

Citation Information

Type Working Paper
Title Food aid and informal insurance
Publication (Day/Month/Year) 2003
Page numbers 0-0
URL http://www.economics.ox.ac.uk/index.php/papers/details/food_aid_and_informal_insurance/
Households in developing countries use a variety of informal mechanisms to cope with risk, including mutual support and risk-sharing. These mechanisms cannot avoid that they remain vulnerable to shocks. Public programs in the form of food aid distribution and food-for-work programs are meant to protect vulnerable households from consumption and nutrition downturns by providing a safety net. In this paper we look into the extent to which food aid helps smooth consumption by reducing the impact of negative shocks, taking into account informal risk-sharing arrangements. Using panel data from Ethiopia, we find that despite relatively poor targeting of the food aid, the programs contribute to better consumption outcomes, largely via intra-village risk sharing.

Related studies

Dercon, Stefan, and Pramila Krishnan. "Food aid and informal insurance." (2003).
Copyright DataFirst, University of Cape Town