Village Economic Accounts: Real and Financial Intertwined

S-Tier
Journal: American Economic Review
Year: 2012
Volume: 102
Issue: 3
Pages: 441-46

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a framework to create village economic and balance of payments accounts from a micro-level household survey. Using the Townsend Thai data, we create the accounts for villages in rural and semi-urban areas of Thailand. We then study these village economies as small open countries, exploring in particular the relationship between the real and financial variables. We examine cross-village risk-sharing and the Feldstein-Horioka puzzle. Our results suggest that within-village risk-sharing is better than across-village and, while there is smoothing in both, the mechanisms are different. We also find that, unlike countries, the cross-village capital markets are highly integrated.

Technical Details

RePEc Handle
repec:aea:aecrev:v:102:y:2012:i:3:p:441-46
Journal Field
General
Author Count
2
Added to Database
2026-01-28