Do the Poor Insure?: A Synthesis of the Literature on Risk and Consumption in Developing Countries

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· Discussion paper Book 22 · World Bank Publications
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Formal tests of perfect consumption-smoothing do not provide convincing evidence that such patterns are prevalent in village economies. Nevertheless, most individuals appear to have appreciable ability to mitigate income fluctuations.
Formal tests of perfect consumption-smoothing do not provide convincing evidence that such patterns are prevalent in village economies. Nevertheless, most individuals appear to have appreciable ability to mitigate income fluctuations.

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