This article examines a novel motive for resource pooling in family networks in rural economies: to relax credit constraints and facilitate investment in non‐collateraliseable assets for which credit market imperfections are most binding. We thus complement established literatures examining risk‐sharing motives for resource transfers within family networks, as well as motives based on kinship tax obligations. We do so exploiting the Progresa programme data, in which family networks can be identified, households are subject to large exogenous resource inflows, and detailed responses on consumption and an array of investments can be tracked in a household panel over five years.
Authors
CPP Director, IFS Research Director
Imran is Professor of Economics at University College London and Director of the Centre for the Microeconomic Analysis of Public Policy at the IFS.
University of Arizona
Giacomo De Giorgi
Journal article details
- DOI
- 10.1111/ecoj.12534
- Publisher
- The IFS
- Issue
- Volume 128, Issue 615, November 2018, pages 2613-2651
Suggested citation
M, Angelucci and G, De Giorgi and I, Rasul. (2018). 'Consumption and Investment in Resource Pooling Family Networks' 128(615/2018), pp.2613–2651.
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