CGIAR-Kampala seminar by Ben D’Exelle
We are pleased to invite you to the next CGIAR-Kampala Research-seminar at IITA/IFPRI, Naguru East Road plot 15, Kampala on Wednesday 5th of February, from 14.00 to 15.00 PM
Investment Behavior, Risk Pooling and Social Distance
Ben D’Exelle, School of International Development, University of East Anglia, United Kingdom
This paper studies the influence of risk pooling on investment propensities. For this, we use data from a field lab experiment in rural Uganda, in which participants invest economic resources in a risky activity. Depending on the treatment, investment profits can be shared with paired persons, and/or the latter can compensate investment losses. We find that investments are lower when losses can be compensated, and that this effect becomes stronger with lower social distance with the paired person. This is consistent with people’s aversion to becoming indebted to others for risks they deliberately expose themselves to. This suggests that social ties can become an important obstacle for investment, if people expect socially close others to compensate investment losses.
Please note that the next CGIAR-Uganda Research- seminar will be on Wednesday March 5th, 2014, 14.00 PM.
If you are interested to present at a CGIAR-Uganda Research-seminar, please let us know!
CGIAR-Kampala research seminars take place every first wednesday of the month between 2 and 3 pm. They are born out of the desire of a group of researchers to discuss their research in depth to peers, as opposed to presenting summaries and policy recommendations in our daily outreach to policy makers. As such, potential presenters should not shy away from more technical issues that they want comments and feedback on.