Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Jakiela, Pamela
dc.contributor.author
Ozier, Owen
dc.date.accessioned
2012-06-29T20:50:35Z
dc.date.available
2012-06-29T20:50:35Z
dc.date.issued
2012-06
dc.date.lastModified
2017-12-14T04:35:31Z
dc.description.abstract
This paper measures the economic impact of social pressure to share income with kin and neighbors in rural Kenyan villages. The authors conduct a lab experiment in which they randomly vary the observability of investment returns. The goal is to test whether subjects reduce their income in order to keep it hidden. The analysis finds that women adopt an investment strategy that conceals the size of their initial endowment in the experiment, although that strategy reduces their expected earnings. This effect is largest among women with relatives attending the experiment. Parameter estimates suggest that women behave as though they expect to be pressured to share four percent of their observable income with others, and substantially more when close kin can observe income directly. Although this paper provides experimental evidence from a single African country, observational studies suggest that similar pressure from kin may be prevalent in many rural areas throughout Sub-Saharan Africa.
en
dc.identifier
http://documents.worldbank.org/curated/en/2012/06/16358327/africa-need-rotten-kin-theorem-experimental-evidence-village-economies
dc.identifier.uri
http://hdl.handle.net/10986/9337
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper; No. 6085
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ACCOUNTING
dc.subject
AFFILIATED ORGANIZATIONS
dc.subject
ASSET HOLDINGS
dc.subject
BANK OPERATIONS
dc.subject
BARGAINING
dc.subject
BORROWING
dc.subject
CREDIT ASSOCIATIONS
dc.subject
CREDIT COOPERATIVES
dc.subject
DECISION MAKING
dc.subject
DECLINE IN INVESTMENT
dc.subject
DEMOGRAPHIC
dc.subject
DEVELOPING ECONOMIES
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
DEVELOPMENT POLICY
dc.subject
DRIVERS
dc.subject
DURABLE
dc.subject
DURABLE ASSET
dc.subject
DURABLE ASSETS
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
ECONOMIC GROWTH
dc.subject
EMPLOYMENT
dc.subject
EXCHANGE RATE
dc.subject
EXPECTED UTILITY
dc.subject
EXPERIMENTAL ECONOMICS
dc.subject
HOUSEHOLD BARGAINING
dc.subject
HOUSEHOLD WEALTH
dc.subject
HUMAN DEVELOPMENT
dc.subject
INCENTIVE EFFECTS
dc.subject
INCOME
dc.subject
INCOMES
dc.subject
INSURANCE
dc.subject
INSURANCE MARKETS
dc.subject
INTERNATIONAL BANK
dc.subject
INVESTING
dc.subject
INVESTMENT AMOUNT
dc.subject
INVESTMENT CHOICE
dc.subject
INVESTMENT CHOICES
dc.subject
INVESTMENT DECISION
dc.subject
INVESTMENT DECISIONS
dc.subject
INVESTMENT INCENTIVES
dc.subject
INVESTMENT INCOME
dc.subject
INVESTMENT OPPORTUNITIES
dc.subject
INVESTMENT OPTION
dc.subject
INVESTMENT OPTIONS
dc.subject
INVESTMENT RETURN
dc.subject
INVESTMENT RETURNS
dc.subject
INVESTMENT STRATEGY
dc.subject
LEVEL OF RISK
dc.subject
LEVY
dc.subject
LIQUIDITY
dc.subject
LOAN
dc.subject
LOTTERIES
dc.subject
MARGINAL UTILITY
dc.subject
MAXIMUM LIKELIHOOD ESTIMATION
dc.subject
MICRO ENTERPRISE
dc.subject
MICROENTERPRISES
dc.subject
MUTUAL INSURANCE
dc.subject
OCCUPATIONS
dc.subject
OPTIMAL ALLOCATION
dc.subject
OPTIMAL INVESTMENT
dc.subject
OPTIMIZATION
dc.subject
PARTICIPATION CONSTRAINTS
dc.subject
PAYOUT
dc.subject
PERMANENT INCOME
dc.subject
PRODUCTIVE INVESTMENTS
dc.subject
PROFITABILITY
dc.subject
RESOURCE ALLOCATION
dc.subject
RISK AVERSE
dc.subject
RISK AVERSE INDIVIDUALS
dc.subject
RISK AVERSION
dc.subject
RISK POOLING
dc.subject
RISK PREFERENCE
dc.subject
RISK PREFERENCES
dc.subject
RISKY INVESTMENT
dc.subject
RISKY INVESTMENTS
dc.subject
RISKY SECURITY
dc.subject
SANCTION
dc.subject
SANCTIONS
dc.subject
SAVINGS
dc.subject
SAVINGS ACCOUNT
dc.subject
SAVINGS ACCOUNTS
dc.subject
SELF­HELP
dc.subject
SOCIAL CAPITAL
dc.subject
SOCIAL NETWORKS
dc.subject
TAX
dc.subject
TAX RATE
dc.subject
TAX RATES
dc.subject
TAXATION
dc.subject
UNSKILLED LABOR
dc.subject
UTILITY FUNCTION
dc.subject
UTILITY FUNCTIONS
dc.subject
UTILITY MAXIMIZATION
dc.subject
UTILITY THEORY
dc.subject
WAGES
dc.subject
WEALTH
dc.title
Does Africa Need a Rotten Kin Theorem? Experimental Evidence from Village Economies
en
okr.crosscuttingsolutionarea
Jobs
okr.date.disclosure
2012-06-01
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2012/06/16358327/africa-need-rotten-kin-theorem-experimental-evidence-village-economies
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Social Protection and Labor
okr.globalpractice
Finance and Markets
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-6085
okr.identifier.externaldocumentum
000158349_20120611131626
okr.identifier.internaldocumentum
16358327
okr.identifier.report
WPS6085
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/06/11/000158349_20120611131626/Rendered/PDF/WPS6085.pdf
en
okr.sector
Education :: General education sector
okr.theme
Human development :: Education for all
okr.topic
Macroeconomics and Economic Growth :: Investment and Investment Climate
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Economic Theory and Research
okr.topic
Private Sector Development :: Emerging Markets
okr.unit
Development Research Group (DECRG)
okr.unit
DECRG: Human Development (DECHD)
okr.volume
1 of 1

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